Vietnam Insight

Awaiting the Fed's interest rate decision. US stock futures rose on Wednesday even after US forces intercepted a surprise Iranian attack targeting American troops in the Middle East, driving oil prices higher and renewing concerns over inflation and the outlook for interest rates. Investors also awaited the Federal Reserve’s policy decision, where it is expected to leave interest rates unchanged, although some traders continue to price in the possibility of a rate hike. In corporate news, Ford Motor surged nearly 4% in after-hours trading after the automaker topped earnings expectations and raised its 2026 outlook. Meanwhile, SK Hynix dropped almost 2% despite reporting another record quarterly profit, as results came in below analyst estimates. Visa also fell more than 1% after the payments company issued weaker-than-expected guidance. During Tuesday’s regular session, the Dow and S&P 500 gained 1.03% and 0.21%, respectively, while the tech-heavy Nasdaq Composite slipped 0.22%.

Short-term correction with expected technical rebound. The VN-Index closed the trading session at 1680.62 points (+11.61 points, +0.70%), with trading volume at the average level of the past 20 sessions. 195 stocks increased in price, while 128 stocks decreased. Stocks positively impacting the index included HPG, MBB, and VNM; while VJC, LPB, and VBB negatively affected the index. Foreign investors made net purchases of nearly VND 1,000 billion during the session (selling nearly VND 2,200 billion worth of VHM in a block trade), focusing on HPG, PNJ, and SHB; and net sales of VHM, VPB, and NVL.

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, ...).