Vietnam Insight

Stocks surge, oil slumps as US and Iran reach peace agreement. US stock futures rallied on Monday after investors welcomed a breakthrough agreement to end the conflict between the US and Iran, paving the way for the reopening of the Strait of Hormuz. The deal, which is set to be signed in Switzerland on June 19, reportedly includes the lifting of blockades, sanctions relief for Iran, and the dismantling of Tehran’s nuclear program. Oil prices fell to a two-month low following the announcement, easing worries about rising inflation and the risk of interest rate hikes. Dow and S&P 500 futures climbed more than 1%, while Nasdaq 100 futures advanced over 2%. The major indexes are also coming off a strong week, with sentiment boosted by SpaceX’s record-breaking IPO on Friday. The company finished the session with a market capitalization above $2 trillion after soaring more than 19%, highlighting robust investor appetite for high-profile growth stocks.

Accumulating ahead of a breakout. The VN-Index closed the session at 1,791.65 points, down 6.96 points (-0.39%), with trading volume remaining below the 20-session average. However, market liquidity improved significantly, rising 56% compared to the previous session. A total of 118 stocks advanced, while 177 declined.The main positive contributors to the index were GAS, TCB, and VJC, whereas VHM, VPL, and VIC weighed most heavily on market performance. Foreign investors recorded net sales of VND 492 billion, primarily driven by selling pressure in VIC 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.

Current portfolio: MBB; Watchlist: HPG,  KDH