Vietnam Insight

Declines across multiple markets. US stock index futures were steady on Friday after the S&P 500 fell 0.47% and the Nasdaq Composite dropped 1.25% on Thursday while the Dow Jones added 0.1%, with chipmakers Micron, Nvidia, Sandisk, AMD and Intel leading the decline after reports that OpenAI's annualized revenue reached about $50 billion at the end of September, below the $68 billion widely cited a month earlier; SpaceX rose more than 4% after hours on a deal to acquire a nationwide spectrum portfolio, and investors now turn to October US consumer sentiment data and earnings from Delta Air Lines and BlackRock

Range-bound trading with strong market divergence. The VN-Index closed at 1,738.9 points (-14 points, -0.82%) amid low liquidity. A total of 122 stocks advanced, while 190 declined. VIC, VHM, and VCB weighed on the index, while GAS and PLX contributed positively. Foreign investors recorded net selling of VND 451 billion.

Trading Strategy: We favor defensive stocks with low beta, strong cash flows, high dividend yields, and low leverage in a high-interest-rate environment. The insurance and utilities sectors could be considered. Given the lack of liquidity, the market remains vulnerable to sudden declines, making market pullbacks a more appropriate time to accumulate rather than chase rallies. In addition, investors should focus more on individual sectors and stocks than on the broader index, given the high level of market differentiation.

Current hodling portfolio: REE; Watchlist: TCH BVH, GAS; High risk stocks to avoid: PNJ NVL