Vietnam Insight

Market remained stable as investors awaited upcoming economic data. US stock futures edged higher on Monday as investors prepared for another wave of corporate earnings that could provide fresh clues on the strength of the economy and serve as new catalysts for the artificial intelligence trade. Major companies set to report this week include Berkshire Hathaway, Eli Lilly, Caterpillar, McDonald's, and Walt Disney, among others. Technology firms such as Palantir, Advanced Micro Devices, and SpaceX are also due to release quarterly results. Investors will also monitor a packed schedule of labor market data, highlighted by Friday's closely watched monthly US jobs report. Meanwhile, oil prices declined after President Donald Trump said peace talks with Iran will resume today following his decision to cancel a planned strike on the Islamic Republic. The major indexes are coming off a volatile month, marked by a steep selloff in semiconductor and other AI-related stocks as investors rotated into software companies and other areas of the market.

Range-Bound Trading with Resistance at 1,800. The VN-Index ended the final trading session of the week down 8.88 points (-0.51%), while market liquidity remained around the 20-session average, suggesting that selling pressure was relatively contained. Banking stocks provided key support, with VCB, BID, and CTG being the largest positive contributors to the index, whereas VIC, MSN, and ACB weighed the market down. Foreign investors recorded net selling of VND306 billion, with net buying concentrated in VCB, FPT, and VIC, while VHM and TCB experienced the strongest net foreign outflows, highlighting continued selective positioning in large-cap stocks

Trading Strategy: Investors may take advantage of market pullbacks to gradually accumulate positions while maintaining a prudent cash allocation to manage risk and preserve flexibility to increase exposure once a market recovery is confirmed. Investors should avoid using margin to bottom-fish, as the market may still be in the process of forming a second bottom. In addition, technical rebound sessions provide an opportunity to rebalance portfolios by reducing exposure to companies whose business performance has fallen short of expectations.

Buy recommendation: POW; Current portfolio: LPB; Watchlist: HPG, REE

High-risk stocks to avoid: Real estate (PDR, KDH, NLG), HDG and PNJ