Vietnam Insight

Oil prices approach $85 per barrel. US stock futures were little changed on Wednesday as investors awaited another busy round of corporate earnings, with Alphabet, Tesla, GE Vernova, Philip Morris, and Texas Instruments among the major companies scheduled to report. In extended trading, Super Micro Computer surged nearly 20% after posting stronger-than-expected profitability and unveiling a record order backlog driven by robust demand for its AI-optimized servers. Meanwhile, Pegasystems tumbled more than 13% after the software firm delivered second-quarter results that missed Wall Street estimates. During Tuesday’s regular session, the Nasdaq Composite advanced 1.29%, while the S&P 500 and Dow rose 0.89% and 0.74%, respectively. Chipmakers led the rally after strong export data from Taiwan and South Korea boosted confidence in the sector. Solid earnings from blue-chip companies, including 3M and General Motors, also helped ease concerns about the strength of corporate America.

Short-term correction with expected technical rebound. VN-Index closed at 1,730.56 points, down 12.95 points (-0.74%). Market liquidity declined slightly from the previous session, although total trading value was supported by a large block transaction in LPB. The market recorded 104 gainers and 196 decliners. LPB and MCH were the largest positive contributors to the index, while VIC, GAS, and BSR weighed the most on market performance. Foreign investors were net buyers of VND 69 billion, with net purchases concentrated in SHB, HDB, and VNM, while VIC and FPT experienced the largest net foreign selling.

Trading Strategy: Investors may focus on stocks with sideways accumulation patterns and strong earnings growth. Gradual accumulation of deeply discounted stocks is a more suitable strategy than short-term trading while the broader market remains in a downtrend. Investors should limit the use of margin and avoid bottom-fishing until there are clear signs that the downward trend has stabilized.

Potential watchlist: HPG, POW, REE

High-risk stocks to avoid: Real estate (PDR, KDH, NLG) and oil & gas (GAS, PVS, PVD, ...)