Vietnam Insight

Escalating Middle East tensions. US stocks closed lower on Thursday amid deteriorating macroeconomic backdrop and renewed doubts over AI spending. The S&P 500 dropped 1.2%, the Nasdaq 100 lost 1.9%, and the Dow Jones shed 507 points. Communication services and consumer discretionary were by far the worst performing sectors while tech was also under pressure. Despite solid earnings, Alphabet fell 6.9% after raising its capital spending forecast, while Tesla tumbled 14.5% as profit declined despite strong electric-vehicle deliveries

Short-term correction with expected technical rebound. VN-Index closed at 1,699.38 (+30.85 points, +1.85%), while trading volume remained above the 20-session average. Market breadth improved, with 198 gainers and 127 decliners. The main positive contributors to the index were VIC, VHM, and GAS, while LPB, VNM, and MBB weighed on market performance. Foreign investors recorded a net sell of VND 479 billion, with net buying concentrated in SHB and LPB, while MBB, TCB, and VCB experienced the largest net foreign selling.

Trading Strategy: Following the recent sharp correction, valuations across many stocks have become more attractive, creating accumulation opportunities in companies with solid fundamentals and favorable earnings growth prospects. Investors may consider gradually accumulating quality stocks during market pullbacks, while maintaining a prudent cash allocation to manage downside risks and preserve flexibility to increase exposure once the market confirms a sustainable recovery.

Watchlist: HPG, POW, REE

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