Vietnam Insight

Global markets rally on hopes of a US–Iran peace deal, oil prices plunge. US stock futures declined on Thursday after the US military launched additional strikes against Iran as President Donald Trump accused Tehran of dragging out talks on an interim peace deal. The latest escalation sent oil prices higher, keeping traders cautious about inflationary risks and potential central bank interest rate hikes. In corporate news, Oracle shares plunged more than 10% in extended trading after the company unveiled plans to raise an additional $20 billion through equity and debt offerings to support its artificial intelligence expansion. In regular trading on Wednesday, the Dow fell 1.87%, the S&P 500 lost 1.62%, and the Nasdaq Composite slid 1.98%. Eight of the 11 S&P sectors finished in negative territory, with industrials, materials, and technology stocks leading the declines. Tech and chip stocks also faced renewed selling pressure amid lingering concerns over lofty AI-related valuations and growing investor caution ahead of SpaceX's closely watched IPO on Friday.

Accumulating ahead of a breakout. The VN-Index closed the trading session at 1,798.61 points (-5.10 points, -0.28%), with trading volume below the 20-day average. 118 stocks rose, while 178 declined. Stocks positively impacting the index included GVR, KBC, and SAB; while VHM, VJC, and HPG negatively affected the index. Foreign investors net sold VND 504 billion, mainly focusing on NVL and VHM.

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.

Buy Recommendation: CTD

Current portfolio: MBB; Watchlist: HPG,  KDH, CTD