Vietnam Insight

Global markets were mixed. US stock futures edged lower on Tuesday after Wall Street kicked off the week with solid gains, led by another record close for the Dow. In Monday’s regular session, the Dow rose 0.29% to finish above the 53,000 mark for the first time. The S&P 500 and Nasdaq Composite also advanced 0.72% and 1.12%, respectively, supported by strength in technology shares. Among the top gainers were Tesla (+6.7%), AMD (+6.6%), Meta Platforms (+3%), Broadcom (+3.7%), and Western Digital (+7.1%). In after-hours trading, Rivian plunged more than 9% after the electric vehicle maker launched a public offering of 75 million common shares. Meanwhile, Samsung Electronics shares fell in pre-market trading in South Korea despite posting stronger-than-expected profits, driven by solid demand for AI data center memory chips.

Accumulating ahead of a breakout. VN-Index closed at 1,843.5 points, down 18.58 points (-1.00%), with trading volume rising above the 20-day average, indicating stronger market activity. Market breadth was negative, with 58 advancers and 267 decliners. VHM, HDB, and FPT were the largest positive contributors to the index, while VCB, BID, and BSR exerted the biggest downward pressure.Foreign investors recorded a net sell of VND 2.787 trillion, primarily driven by VIC, which accounted for VND 2.252 trillion of the total net outflow.

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)