Vietnam Insight

Surging US Treasury Yields Pressure Equities. US stock futures edged lower on Friday as surging Treasury yields continued to weigh on equities, with the Dow on track for its fourth consecutive weekly decline. Futures tied to the Dow, S&P 500 and Nasdaq 100 were each down around 0.1%. In regular trading on Thursday, the Dow slipped 0.31%, while the S&P 500 and Nasdaq Composite finished little changed. The moves came as the 10-year US Treasury yield jumped to 5.2%, its highest level since 2007, while the 30-year yield climbed to 5.5%, its highest since 2004. Oil-market volatility also pressured sentiment as investors weighed reports that the US and Iran were discussing a phased deal that could reopen the Strait of Hormuz and lift a US blockade on Iranian ports. Investors now await the University of Michigan consumer sentiment report and durable goods data due Friday, with no major earnings releases scheduled.

Accumulates above MA 50. The VN-Index ended the trading session at 1,775.09 points (-26.56 points, -1.74%), with relatively low liquidity. There were 81 gainers and 228 decliners during the session. VIC and VHM were the main negative contributors to the index, while GVR and MSN provided positive contributions. Foreign investors posted approximately VND 900 billion in net selling.

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.

Sell Recommendation: VRE

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