Vietnam Insight

Oil prices are trading near a three-month low. US stock futures stabilized on Wednesday as investors prepared for the upcoming Federal Reserve policy decision, where it is widely expected to keep interest rates unchanged. On the economic front, markets will monitor retail sales and pending home sales data, while earnings reports from CarMax and Jabil are also due. In regular trading on Tuesday, the Dow gained 0.64%, whereas the S&P 500 and Nasdaq Composite fell 0.57% and 1.15%, respectively. Technology shares came under pressure as investors locked in profits following a strong rally in semiconductor stocks, with Nvidia (-2.4%), Broadcom (-4.4%), Micron (-6.2%), AMD (-7.3%), and Intel (-8.5%) posting notable declines. Meanwhile, SpaceX advanced 4.8%, extending gains since its IPO on Friday, amid reports that the company plans to acquire Cursor in a deal valued at $60 billion.

Accumulating ahead of a breakout. The VN-Index closed at 1,807.94 points, up 8.63 points (+0.48%), with trading volume remaining in line with the 20-session average. Market liquidity improved noticeably following several subdued trading sessions. Market breadth was positive, with 187 gainers and 113 decliners. The main contributors to the index's advance were VIC, TCX, and HVN, while ACB, VJC, and GAS exerted the largest negative impact. Foreign investors recorded a net sell value of VND 370 billion, primarily driven by net selling in VHM, TCB, and MBB.

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; CTD

Watchlist: HPG,  KDH, SSI