Vietnam Insight

Asian equities retreat, with the Kospi and Nikkei posting sharp losses - U.S. May jobs report is stronger than expected. US stock futures edged lower on Monday after Wall Street suffered a sharp selloff in the previous session, led by heavy losses in semiconductor and other technology stocks. Investors also weighed geopolitical risks after Iran launched several rounds of missiles toward Israel in a warning against further military actions in Lebanon, adding uncertainty as ceasefire efforts remain fragile and peace talks show little progress. During Friday's regular session, the tech-heavy Nasdaq Composite plunged 4.18%, marking its worst performance since April 2025, while the S&P 500 and Dow Jones fell 2.64% and 1.35%, respectively. Chipmakers were among the hardest hit, including Micron (-13.3%), Nvidia (-6.2%), Marvel (-16.7%), Advanced Micro Devices (-10.9%) and Sandisk (-11.4%). The downturn was also fueled by a stronger-than-expected May jobs report, which pushed Treasury yields higher and reinforced expectations that the Federal Reserve could raise interest rates later this year.

Accumulating ahead of a breakout. The VN-Index closed the week's trading session at 1,838.90 points (+7.35 points, +0.40%), with trading volume remaining below the 20-day average. 95 stocks rose in price, while 203 declined. Stocks positively impacting the index included VIC, VHM, and VJC; while BID, VCB, and LPB negatively affected the index. Foreign investors net bought VND 307 billion, mainly focusing on VIC, ACB, and FPT.

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. Investors should limit the use of margin when the trend is not clearly defined during this period.

Current portfolio: MBB

Watchlist: HPG, KDH, CTD