Vietnam Insight

FOMC minutes show Fed officials remain divided. US stock futures stabilized on Thursday as investors assessed the impact of escalating tensions in the Middle East after the US military confirmed it had carried out strikes on Iran for a second straight day. Markets remain concerned that higher energy prices could reignite inflationary pressures and prompt the Federal Reserve to raise interest rates sooner than previously expected. In regular trading on Wednesday, the Dow and S&P 500 fell 1.09% and 0.28%, respectively, while the Nasdaq Composite edged up 0.2%. Materials, financials, and real estate were the weakest-performing sectors, whereas energy and technology stocks posted gains. Investors are now awaiting the latest weekly jobless claims and existing home sales figures for fresh clues on the interest rate outlook. Earnings reports from PepsiCo, Progressive, Cintas, and other major companies are also due.

Accumulating ahead of a breakout. VN-Index closed at 1,853.7 points, gaining 5.45 points (+0.29%), while trading volume was broadly in line with the 20-session average. Market breadth remained positive, with 172 advancers outnumbering 128 decliners. The main positive contributors to the index were BSR, VIC, and VPL, whereas LPB, FPT, and TCX weighed on overall market performance.Foreign investors recorded a net sell value of VND 552.8 billion, primarily driven by net sales of PNJ (VND 221 billion), MSN (VND 184 billion), and VHM (VND 131 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; Sell Recommendation: CTD

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