Vietnam Insight

US Futures edge lower ahead of warsh speech. US stock futures edged lower on Friday as investors awaited Federal Reserve Chair Kevin Warsh’s speech at the annual Jackson Hole symposium later in the global day for clues about the outlook for US interest rates. Investors also digested the latest corporate earnings, with Gap surging nearly 15% in extended trading after the retailer named a new CEO for its struggling Old Navy brand. Meanwhile, Marvell Technology and Autodesk tumbled more than 7% and 5%, respectively, following disappointing quarterly results. In regular trading on Thursday, the tech-heavy Nasdaq Composite jumped 1.57%, while the Dow Jones and S&P 500 gained 0.2% and 0.72%, respectively. The gains came as Nvidia rallied 8.7% after strong demand for AI computing prompted the world’s largest company to forecast a 70% increase in revenue next fiscal year, challenging persistent concerns that capital spending on AI infrastructure could slow.

Trading sideways within a wide range, with 1,900 as key resistance. The VN-Index closed at 1,831.56 points (+10.24 points, +0.56%), with trading volume below the 20-session average. A total of 117 stocks advanced and 187 declined during the session. The stocks contributing positively to the index were VIC, TCB, and VPB, while TCX, STB, and GVR weighed on the index. Foreign investors recorded net buying of VND209 billion, mainly concentrated in TCB and HPG.

Trading Strategy: Investors should remain patient and wait for market pullbacks or short-term volatility on relatively low trading liquidity to identify more attractive entry points. The preferred strategy is to focus on stocks that have yet to rally significantly relative to the broader market, but have solid business fundamentals, positive growth prospects, and reasonable valuations. This approach can help mitigate the risk of chasing stocks that have already experienced sharp rallies. Meanwhile, investors should avoid excessive optimism when the market moves up strongly and refrain from increasing their exposure too aggressively at elevated price levels. Maintaining an appropriate cash position will provide greater flexibility to deploy capital during market corrections while allowing investors to better manage downside risks.

Current portfolio: MBB, POW, NVL; Watchlist: HPG, REE, BVH, GAS and securities stock (HCM, SSI, VCI…)

High-risk stocks to avoid: HDG