Vietnam Insight

US inflation cooled, oil climbed above $80 on escalating Iran tensions. US stock futures were little changed on Thursday after the major indexes posted gains in the previous session, as softer inflation data drove Treasury yields lower and supported equities. In regular trading on Wednesday, the Dow advanced 0.29%, the S&P 500 added 0.38%, and the Nasdaq Composite climbed 0.62%, led by gains in the communication services, consumer discretionary, and financial sectors. Both headline and core producer prices came in below expectations in June, reinforcing the weaker CPI report released a day earlier and reducing expectations of a near-term Federal Reserve rate hike. Strong earnings from major financial companies further boosted sentiment by signaling that corporate profit growth remains resilient. Investors are now awaiting Thursday's retail sales and weekly jobless claims data, along with earnings reports from Netflix, UnitedHealth, General Electric, and other major companies.

Accumulating ahead of a breakout. VN-Index closed at 1,782.12 points, down 24.51 points (-1.36%), with trading volume returning to the 20-day average. Market breadth remained negative, with 70 gainers and 240 decliners. TCX, ACB, and VBB were the largest positive contributors to the index, while VHM, VIC, and FPT weighed the most on market performance. Foreign investors recorded a net sell of VND 969 billion, primarily selling FPT, PNJ, and SSI, while HPG and BMP attracted net foreign buying.

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, POW