Vietnam Insight

US Treasury yields declined. US stock futures were little changed on Friday as investors awaited the closely watched August payrolls report for fresh clues about the health of the labor market and the outlook for monetary policy. In extended trading, DocuSign jumped 4% after reporting better-than-expected Q2 earnings and revenue while raising its full-year sales guidance. Meanwhile, Lululemon Athletica plunged more than 18% after posting weaker sales and profits for Q2 and issuing a disappointing forecast for the current quarter. In regular trading on Thursday, the Dow climbed 1.18%, the S&P 500 gained 1.06%, and the Nasdaq Composite jumped 1.4%, with all three benchmarks advancing for a second consecutive session. The gains came as Treasury yields retreated after Federal Reserve Governor Christopher Waller indicated that a rate hike would not be warranted if underlying inflation continues to ease.

Sideways trading within a wide range, with resistance at 1,900 points. The VN-Index ended the trading session at 1,827.72 points, down 4.4 points (-0.24%), with trading volume above the 20-session average. A total of 93 stocks advanced, while 236 stocks declined. VIC, VHM, and SSB were the top positive contributors to the index, while TCB, VCB, and VPB weighed on the market. Foreign investors recorded net selling of VND 1,532 billion, mainly concentrated in VCB, VIC, and VPB.

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