Vietnam Insight

Selling Pressure on Semiconductor Stocks. US stock futures edged lower on Friday after the major indexes declined in the previous session, pressured by a broad selloff in semiconductor stocks. Investors also digested the latest corporate earnings, with Netflix plunging nearly 9% in extended trading after its results disappointed investors already concerned about slowing user engagement and intensifying competition from short-form video platforms. During Thursday's regular session, the tech-heavy Nasdaq Composite dropped 1.4%, while the S&P 500 and Dow Jones fell 0.51% and 0.2%, respectively. Market participants are increasingly questioning whether the lofty valuations of AI-related chipmakers remain justified given the industry's aggressive growth expectations. Micron Technology and AMD each slumped more than 5%, while SanDisk sank over 12%, Broadcom lost about 5%, and US-listed shares of SK Hynix tumbled more than 13%.

Accumulating ahead of a breakout. VN-Index closed at 1,804.24 points (+22.12 points, +1.24%) with trading liquidity increasing sharply during the session. Market breadth remained negative, with 141 gainers and 240 decliners. VIC, VHM, and HDB were the largest positive contributors to the index, while HPG, BSR, and BID weighed the most on performance. Foreign investors recorded a net sell of VND 26 billion, a significant improvement from an intraday net sell of nearly VND 400 billion. Net selling was concentrated in PNJ and SSI, while VIC, ACB, and VHM attracted the strongest foreign net buying.

Trading Strategy: Investors may focus on stocks with sideways accumulation patterns and strong earnings growth rather than relying solely on movements in the VN-Index for medium-term positioning. In the short term, attention can be directed toward stocks that are maintaining solid price bases within an uptrend, particularly in the energy and banking sectors. Investors are also advised to limit the use of margin until the market trend becomes clearer.

Current portfolio: MBB

Watchlist: HPG, POW