Vietnam Insight

World markets surge on US-Iran peace breakthrough. US stocks rallied Monday after the US and Iran reached a preliminary agreement to end the Middle East conflict and reopen the Strait of Hormuz, easing inflation concerns and sending oil prices lower. The S&P 500 rose 1.7%, the Dow Jones gained 469 points to a record high, and the Nasdaq surged 3.1%, its best day since March 31. US crude prices fell 5%, boosting shares of fuel-sensitive companies, with United Airlines climbing 3.9%, Norwegian Cruise Line adding 3.7%, and Carnival Corp rising 3.2%. The drop in oil prices also improved broader market sentiment, supporting gains across growth-oriented sectors, particularly tech stocks

Accumulating ahead of a breakout. The VN-Index closed the session at 1,799.31 points, up 7.66 points (+0.43%), with trading volume remaining around the 20-session average. Market liquidity improved significantly following several previously subdued trading sessions. A total of 209 stocks advanced, while 95 stocks declined.The main positive contributors to the index were HPG, TCX, and HVN, whereas VHM, VIC, and BSR weighed on the market's performance. Foreign investors recorded a net buying value of VND 4.06 trillion, driven primarily by strong net purchases of VIC, which accounted for VND 4.391 trillion.

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.