Vietnam Insight

US stocks hit new record highs, negotiations between the US and Iran remained deadlocked. US equities closed mixed on Wednesday as gains for traditional economic sectors clashed against a pullback for chip producers and AI hyperscalers. The S&P 500 gained 0.2% and the Dow jumped 220 points, both at their record highs. Iran said it has a draft for a peace agreement that would restore trade through the Persian Gulf within a month of being signed, momentarily stoking risk-on moves in before US authorities claimed the document was a complete fabrication. Meta and Amazon rebounded from early session losses and closed sharply higher. Also, Eli Lilly gained 2% and P&G surged nearly 4% to set the pace for defensive sectors.

Accumulating ahead of a breakout. The VN-Index closed the trading session at 1,874.43 points (-9.75 points, -0.52%), with trading volume remaining below the 20-day average. 143 stocks rose, while 174 declined. 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 was recorded for 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.