Vietnam Insight

Money flows out of technology stocks as markets remain cautious ahead of US inflation data. US stock futures declined on Wednesday after the US launched “self-defense strikes” against Iran in response to the downing of an American helicopter, escalating tensions in the region. Investors also awaited the release of US inflation data for fresh signals on the Federal Reserve’s policy outlook, after stronger-than-expected jobs figures last week reinforced expectations of an interest rate hike before the end of the year. In regular trading on Tuesday, the S&P 500 and Nasdaq Composite fell 0.26% and 0.97%, respectively, while the Dow gained 0.17%. Semiconductor stocks remained under pressure, with the iShares Semiconductor ETF dropping more than 3% after surging 6% on Monday. The fund had tumbled 10% on Friday, marking its steepest one-day decline in six years, as investors grew increasingly concerned that the AI-driven rally in chip stocks had become overheated.

Accumulating ahead of a breakout. The VN-Index closed the session at 1,793.05 points (+2.52 points, +0.14%), with trading volume remaining below the 20-day average. Market breadth was positive, with 174 advancers and 128 decliners. The main contributors to the index's gains were ACB, STB, and MSN, while VIC, GAS, and VHM weighed on the market. Foreign investors recorded a net sell value of VND 869 billion, primarily concentrated in FPT and TCB.

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