Vietnam Insight

Reports indicating that the US and Iran will continue peace negotiations despite recent military tensions lifted sentiment. US stock futures were little changed on Friday after the major indexes advanced in the previous session, supported by a strong rally in semiconductor stocks. During Thursday's regular session, the S&P 500 and Nasdaq Composite rose 0.81% and 1.3%, respectively, with both benchmarks remaining on track to post weekly gains. The Dow Jones also added 0.27%. Sentiment toward AI-related stocks has been volatile in recent weeks amid concerns over elevated valuations, though optimism was boosted by robust demand for SK Hynix's US share offering, which was oversubscribed by more than seven times. Leading Thursday's gains were Micron Technology (4.5%), Sandisk (7.6%), and AMD (5.7%). Stocks also drew support from easing oil prices as investors welcomed signs that the US and Iran will continue peace negotiations despite the recent escalation in hostilities.

Accumulating ahead of a breakout. VN-Index closed at 1,840.7 (-13.0 pts, -0.7%) on trading volume below the 20-day average. Market breadth was negative, with 92 gainers and 206 decliners. BSR, GAS, and PLX were the main positive contributors, while VHM, VCB, and TCB weighed the most on the index. Foreign investors posted a net sell of VND 452bn, mainly in TCB, VPB, and GEX.

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

Watchlist: HPG, Seucirities stocks (SHS, VND, VDS)