Vietnam Insight

Strong pressure from surging oil prices and bond yields. US stock futures steadied on Friday after the major averages declined in the previous session, as investors awaited the August consumer price index report. A hotter-than-expected consumer inflation reading could cement expectations that the Federal Reserve will raise interest rates next week, following Thursday’s data showing producer inflation accelerated last month as the Iran war drove up wholesale energy prices. In regular trading on Thursday, the Dow fell 0.61%, while the S&P 500 and Nasdaq Composite declined 0.59% and 0.65%, respectively. All three benchmarks extended their losing streaks to four sessions. Stocks came under pressure from surging oil prices and Treasury yields as inflation concerns intensified. In corporate news, Oracle gained more than 4% in extended trading after reporting better-than-expected quarterly results, while Adobe fell over 2% on weak guidance for the current quarter.

Sideways trading within a wide range, with resistance at 1,900 points. VN-Index ended the trading session at 1,829.23 points, up 2.11 points (+0.12%), with trading volume remaining below the 20-session average. There were 132 advancers and 163 decliners during the session. VHM, VCB, and FPT were the main positive contributors to the index, while VPL, GAS, and HPG weighed on performance. Foreign investors were net buyers of VND355 billion, with buying concentrated in FPT and VIC.

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, VRE, NVL; Watchlist: HPG, REE, BVH, GAS and securities stock (HCM, SSI, VCI…)