Vietnam Insight

Temporary calm in the Middle East supports global stocks. US stock futures moved higher on Monday as oil prices fell sharply after the US refrained from attacking Iran over the weekend, while Tehran also suspended its retaliatory strikes. The pause followed nearly two weeks of escalating conflict, although Iran-backed Houthis in Yemen claimed attacks on Saudi Arabian facilities along the Red Sea, leaving markets cautious about the risk of further supply disruptions. Investors are also preparing for a busy week of corporate earnings and the Federal Reserve's upcoming policy meeting.

Short-term correction with expected technical rebound. VN-Index ended the final trading session of the week at 1,686.1 points (-13.27 points, -0.78%), with trading volume increasing sharply compared to the previous week. There were 88 gainers and 227 decliners in the final session of the week. VIC, VHM, and GAS were the main positive contributors to the index, while LPB, VNM, and MBB weighed on the index. Foreign investors recorded net selling of VND 1,338 billion, with HPG being the main stock purchased, while PNJ, VIX, and VPB were subject to net selling.

Trading Strategy: Following the recent sharp correction, valuations of many stocks have become more attractive, creating opportunities to accumulate fundamentally sound companies with positive growth prospects. Investors may take advantage of market corrections to gradually deploy capital while maintaining an appropriate cash position to manage risk and remain ready to increase exposure once a recovery trend is confirmed. Investors should avoid using leverage (margin) to bottom-fish before the market confirms that the downtrend has ended.In addition, technical rebounds during this week could provide investors with an opportunity to restructure their portfolios by reducing exposure to companies whose business performance has fallen short of expectations.

Watchlist: HPG, POW, REE

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