Vietnam Insight

US stocks hit new record highs, WTI crude holds above $93/barrel on hopes of easing US-Iran tensions. US stock futures edged higher on Wednesday after the S&P 500 and Nasdaq Composite climbed to fresh record highs in the previous session, supported by continued strength in technology shares. During Tuesday’s regular trading session, the S&P 500 advanced 0.61% while the Nasdaq Composite surged 1.19%, whereas the Dow slipped 0.23%. Six of the 11 major S&P sectors ended in positive territory, with technology, industrials and materials leading the gains, while energy, consumer staples and healthcare stocks recorded the sharpest declines. Investors also remained cautiously hopeful that the US and Iran could still secure an agreement despite renewed tensions in the Middle East. In after-hours trading, Zscaler tumbled more than 20% after forecasting weaker-than-expected revenue for the current quarter. Market participants are now awaiting earnings results from Salesforce, Synopsys, Agilent Technologies, HP and Dick's Sporting Goods later on Wednesday.

Accumulating ahead of a breakout. The VN-Index closed the trading session at 1,884.18 points (-1.85 points, -0.10%), with trading volume remaining below the 20-day average. There were 199 gainers and 116 losers. Stocks positively impacting the index included ACB, VCB, and MBB; while VIC, VHM, and GEE negatively affected the index. Foreign investors net sold 942 billion VND, mainly focusing on MSB (528); while net buying ACB and PDR.

Trading Strategy: Investors may focus on stocks with sideways consolidation patterns and strong earnings growth rather than concentrating solely on VN-Index fluctuations for medium-term positioning. In the short term, opportunities may emerge in heavily sold off stocks showing signs of recovery, such as insurance, technology, and real estate sectors.

Current trading portfolio: VGC, PC1, BVH

Watchlist: HPG,  KDH, MBB, CTD, PDR