Vietnam Insight

Focus on the Fed's June meeting minutes. US stock futures rebounded on Wednesday after the major indexes closed lower in the previous session, weighed down by a renewed selloff in semiconductor stocks. Investors continued to assess escalating tensions in the Middle East and rising oil prices after the US launched fresh air strikes on Iran following recent attacks on ships transiting the Strait of Hormuz. Traders also looked ahead to the release of the Federal Reserve’s June meeting minutes for additional clues on the policy outlook. In Tuesday’s regular session, the tech-heavy Nasdaq Composite fell 1.16%, while the S&P 500 and the Dow declined 0.45% and 0.25%, respectively. Chipmakers came under renewed pressure as investors questioned whether AI hyperscalers can sustain elevated infrastructure spending. Samsung’s 19-fold jump in quarterly profit also failed to lift sentiment, while reports that China’s DeepSeek is developing its own AI chip added to concerns across the sector.

Accumulating ahead of a breakout. VN-Index closed at 1,848.25 points, up 4.75 points (+0.26%), with trading volume remaining below the 20-day average. A total of 169 stocks advanced, while 140 declined. LPB, BSR, and MBB were the largest positive contributors to the index, whereas PNJ, MSN, and VHM weighed the most on market performance. Foreign investors recorded a net buy of VND 43.26 billion, although they continued to post significant net sales in VHM (VND 203 billion) and MSN (VND 182 billion).

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)