Vietnam Insight

Global markets rally as AI optimism returns and geopolitical risks ease. US stocks closed sharply higher on Monday, with the S&P 500 rising 1.2%, the Nasdaq 100 surging 2.3%, and the Dow Jones gaining 307 points to finish at a fresh record high, as investors reassessed the AI trade following the recent selloff. Sentiment was also supported by easing tensions between the US and Iran over the weekend, with President Trump saying peace talks with Iran are set to resume on Tuesday. Communication services, consumer discretionary, and technology stocks led the advance. Alphabet jumped 5% on its first trading day as a Dow component replacing Verizon, while Nvidia gained 1.3%, Amazon climbed 3.2%, Meta advanced 2.2%, and Tesla soared 8.5%.

Accumulating ahead of a breakout. VN-Index closed at 1,854.9 (-16.9 points, -0.9%) on trading volume below the 20-day average. There were 192 advancers and 134 decliners. LPB and BID were the biggest positive contributors, while VIC and VHM weighed the most on the index. Foreign investors posted a net sell of VND 787 billion, mainly driven by 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; CTD

Watchlist: HPG, KDH, SSI, Real estate stocks (PDR, NLG, DXG)