Vietnam Insight

Awaiting the latest FED policy decision. US stock futures edged higher as investors awaited the latest Federal Reserve policy decision, with markets widely expecting the central bank to deliver its first rate hike in around three years. Traders will closely watch for guidance on another potential increase later this year, with expectations building for a move in October or December. In regular trading on Tuesday, the Dow declined 0.3%, the S&P 500 fell 0.45%, and the Nasdaq Composite dropped 0.78%. Equities faced pressure from soaring oil prices and higher Treasury yields. Losses were broad-based, with credit-sensitive AI hyperscalers particularly affected by rising borrowing costs, including Alphabet (-1.3%), Microsoft (-1.6%), Oracle (-3.1%), and Amazon (-2%). Investors also continued to weigh growing safety concerns surrounding AI development, although Nvidia CEO Jensen Huang argued that additional AI security regulations are unnecessary and that market forces will encourage companies to innovate safely.

Sideways trading within a wide range, return to the 1,800 area. The VN-Index ended the trading session at 1,811.15 points (+22.92 points, +1.28%). There were 232 gainers and 86 decliners during the session. GAS and VCB were the top positive contributors to the index, while VIC and VHM weighed on the index. Foreign investors posted VND 717 billion in net buying, mainly concentrated in VCB and BSR.

Trading Strategy: Investors should remain patient and wait for low-volume volatility/corrections to identify suitable entry points. The preferred strategy is to focus on stocks that have not risen significantly, have established accumulation bases, solid business fundamentals, reasonable valuations, and strong participation from foreign investors.

Buy Recommendation: VCB FPT

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