Vietnam Insight

Improved Sentiment – Bond Yields Edged Lower. US stock futures were little changed on Friday after the major averages rallied in the previous session, as falling oil prices and bond yields improved risk appetite. In regular trading on Thursday, the Dow rose 0.61%, the S&P 500 gained 1.14%, and the Nasdaq Composite advanced 1.69%. Chipmakers led the gains, extending their recovery after concerns over AI safety earlier in the week sparked doubts about AI-related capital spending. Strong performances came from Micron (5.5%), Nvidia (2.5%), Intel (7.7%), AMD (6.4%), and SanDisk (6.2%). Stocks benefited from lower oil prices that eased inflation worries and helped Treasuries rally across the curve, with the US 10-year yield falling to around 4.93% after topping 5% earlier this week. Wall Street also rallied in relief after the Federal Reserve delivered a widely expected rate hike, though policymakers signaled further tightening to curb inflation.

Accumulates above MA 50. The VN-Index ended the session at 1,822.77 points (+12.66 points, +0.7%), with improved liquidity. A total of 200 stocks advanced, while 114 declined. VPB, CTG, and SSB were the main positive contributors to the index, while GAS and BVH weighed on the index. Foreign investors posted net selling of VND 317bn, mainly concentrated in VHM and VIC.

Trading Strategy: Investors may consider accumulating large-cap stocks at lower levels, particularly those expected to attract upgrade-related capital inflows, with attractive valuations and strong fundamentals (FA). However, investors should remain cautious and avoid chasing stocks at high prices, as the primary trend remains range-bound.

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