Vietnam Insight

Escalating tensions in the Middle East sent oil prices sharply higher. US stock futures edged lower on Tuesday as investors assessed escalating tensions in the Middle East after President Donald Trump reinstated a blockade on Iranian vessels transiting the Strait of Hormuz. The move sent oil prices sharply higher and weighed on equities, fueling concerns that central banks may need to raise interest rates to contain renewed inflationary pressures. Investors also awaited key US inflation data and Fed Chair Kevin Warsh’s testimony before Congress later on Tuesday. On the corporate front, earnings from JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, and Wells Fargo are due later today. In regular trading on Monday, the Dow fell 0.26%, the S&P 500 declined 0.79%, and the Nasdaq Composite dropped 1.55%. Chipmakers led the losses amid persistent concerns that AI hyperscalers could scale back spending on AI infrastructure, with Micron (-4.3%), Nvidia (-3.5%), Sandisk (-12.6%), AMD (-4.2%), and Intel (-6.1%) all ending lower.

Accumulating ahead of a breakout. The VN-Index closed the trading session at 1,800.54 points (-27 points, -1.52%), with trading volume significantly higher than the 20-day average. 52 stocks rose in price, while 271 stocks fell. Stocks positively impacting the index included BSR, VPL, and CRV; while VHM, VCB, and VIC negatively affected the index. Foreign investors net sold VND 257 billion, primarily focusing on CTG, HPG, and VPB; they net bought VHM, MBB, and HDB.

Trading Strategy: For medium term positions, investors may focus on stocks with sideways accumulation patterns and strong earnings growth rather than solely on VN-Index movements. In the short term, investors should wait for the market to stabilize and rebuild an accumulation base before seeking opportunities, while limiting margin use as the broader trend remains sideways and geopolitical risks are resurfacing.

Current portfolio: MBB

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