Vietnam Insight

Cautious Sentiment Ahead of the June Jobs Report. US stock futures edged lower on Thursday as investors remained cautious ahead of the June jobs report, which is expected to provide fresh clues about labor market conditions and the Federal Reserve’s interest rate outlook. Data released on Wednesday showed private-sector hiring slowed more than expected last month. Fed Chair Kevin Warsh also said inflation expectations had eased over the past month while reaffirming the central bank’s commitment to restoring price stability. In regular trading on Wednesday, the tech-heavy Nasdaq Composite fell 0.66% as investors reassessed the durability of the AI-driven rally, while the S&P 500 and Dow Jones lost 0.22% and 0.03%, respectively. Chipmakers and memory stocks led the decline, with steep losses from Micron Technology (-10.6%), Sandisk Corp (-10.6%), AMD (-6.9%), Intel (-9%), and Applied Materials (-10%).

Accumulating ahead of a breakout. The VN-Index closed at 1,867.21, up 7.02 points (+0.39%), with trading volume in line with the 20-day average. Market breadth remained positive, with 195 advancers and 121 decliners. MCH, VCB, and BSR were the largest positive contributors to the index, while VIC, VHM, and VPL exerted the greatest downward pressure. Foreign investors recorded net buying of VND 354 billion, primarily driven by VPB, which accounted for VND 327 billion of the total net inflow.

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)