Vietnam Insight

US futures flat to start the week. US stock futures were little changed on Monday as investors awaited fresh market catalysts this week, with the major indexes coming off a losing week after a sharp selloff in semiconductor stocks. Last week, the Nasdaq Composite fell 2.9%, while the S&P 500 and Dow Jones lost 1.55% and 0.93%, respectively. The VanEck Semiconductor ETF tumbled nearly 9%, marking its third weekly decline in the past four weeks. Investors also continued to monitor escalating hostilities between the US and Iran, which pushed oil prices higher and heightened concerns over inflation and the potential for interest rate hikes. Iran said its ceasefire with the US had effectively collapsed, while the US military reported the death of a third service member in the past two days.

Accumulating ahead of a breakout. The VN-Index ended the week at 1,787.45, down 40.89 points (-2.24% WoW), while market liquidity improved compared with the previous week. In the final trading session of the week, 95 stocks advanced and 216 declined. The main positive contributors to the index were VNM, STB, and LPB, while VIC, VHM, and VCB weighed the most on the market. Foreign investors recorded net selling of VND678bn on the final trading day, primarily in TCB and PNJ, while posting net purchases in VNM, LPB, and VND.

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