Vietnam Insight

Mixed performance. US stock futures were little changed on Tuesday as investors looked ahead to another batch of corporate earnings that could provide fresh clues on tech performance and consumer activity. Key earnings due later in the global day include Intuit, Zoom, Semtech, Dick’s Sporting Goods and Macy’s. Investors will also turn their attention to Nvidia’s earnings report on Wednesday for further insight into the strength of artificial intelligence-related demand. On the economic front, US consumer confidence data are due Tuesday, followed by the latest personal consumption expenditure price index on Wednesday. Additionally, Federal Reserve Chair Kevin Warsh is scheduled to deliver a speech at the Fed’s annual Jackson Hole symposium on Friday. In regular trading on Monday, the Dow rose 0.26%, while the S&P 500 and Nasdaq Composite fell 0.28% and 0.76%, respectively, amid broad-based losses across AI infrastructure stocks.

Range-Bound trading with resistance at 1,800. The VN-Index ended the session at 1,788.78 points, up 20.66 points (+1.17%), with trading volume above the 20-session average. 263 stocks advanced, while 70 declined. VIC, VHM, and VPB were the top positive contributors to the index, while LPS, CTG, and LPB exerted the largest negative impact. Foreign investors recorded net buying of VND179 billion, mainly concentrated in HPG, VIC, and VPB.

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 Recommendaiton: NVL; Current portfolio: MBB, POW; Watchlist: HPG, REE, BVH

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