Vietnam Insight

Technology stocks led gains as investors await U.S. inflation data. US stock futures eased on Tuesday after the S&P 500 and Nasdaq Composite opened the week higher, supported by a rebound in technology shares. In regular trading on Monday, the S&P 500 and Nasdaq Composite gained 0.3% and 0.86%, respectively, recovering part of the previous session’s losses, while the Dow slipped 0.16%. Technology, energy, and consumer discretionary stocks led the advance, whereas utilities, real estate, and materials underperformed. Chipmakers drove much of the rally, with shares of Micron Technology (+9.9%), Nvidia (+1.7%), Marvell Technology (+9.6%), Intel (+11.2%), and Advanced Micro Devices (+5.1%) posting solid gains. Investors are now awaiting earnings reports from Casey’s General Stores, J.M. Smucker, and Designer Brands, among others, due Tuesday. Later this week, the latest US CPI and PPI data will offer further insight into the Federal Reserve’s interest rate outlook.

Accumulating ahead of a breakout. The VN-Index closed the trading session at 1,790.53 points (-48.37 points, -2.63%), with improved trading volume compared to the average of the previous week. 66 stocks rose in price, while 250 declined. Stocks positively impacting the index included LPB, VCK, and NVL; while VIC, VHM, and BID negatively affected the index. Foreign investors net sold VND 667 billion, mainly focusing on FPT and VHM. Meanwhile, they net bought VCB and ACB.

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