Vietnam Insight

Stronger-than-expected US labor data. US stocks closed mostly lower on Friday after stronger-than-expected labor market data gave the Fed more room to raise interest rates. The S&P 500 lost 0.4%, the Dow shed 272 points, while the Nasdaq added 0.2%. Nonfarm payrolls increased by 162K, above expectations for a gain of just over 50K jobs. Credit-sensitive sectors pulled back after the data as yields rebounded. Alphabet shed 1.1%, Microsoft lost 2%, Tesla tumbled 5.9%, and Palantir shed 4.5%, while JPMorgan retreated 0.9% and Visa fell 1%. Still, chipmakers rose after underperforming earlier in the week, helping to support the Nasdaq. Nvidia gained 0.8%, Micron rose 6.1%, Intel added 4.5%, and Marvell advanced 7% amid signs of optimism surrounding OpenAI’s new GPT model. Sandisk soared 11.9%, and AMD added 4.7%. On the week, the Dow dropped 0.3% while the S&P 500 added 0.1% and the Nasdaq rose 0.4%. The US stock market will be closed Monday for the Labor Day holiday.

Sideways trading within a wide range, with resistance at 1,900 points. VN-Index ended the trading session at 1,853.08 points, up 25.36 points (+1.39%), while trading volume remained below the 20-session average. There were 128 advancers and 176 decliners during the session. The stocks contributing positively to the index were VIC, VHM, and VPB, while SSB, OCB, and VPX weighed on the index. Foreign investors were net buyers of VND95 billion, with buying activity mainly concentrated in VIC and VHM.

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