HIGHLIGHTED NEWS
Faced with pressure from sharply rising fuel prices due to geopolitical tensions in the Middle East, the Ministry of Construction has reported to the Government and proposed several solutions to support the transportation sector, contributing to stabilizing logistics costs and maintaining production and business activities. According to the Ministry of Construction, fuel currently accounts for approximately 35-40% of operating costs for aviation and 30-40% for road and maritime transport. To support businesses and limit the ripple effect on the economy, the Ministry of Construction recommends studying adjustments to several tax policies such as excise tax, environmental protection tax, and VAT on petroleum products for an appropriate period. Simultaneously, it proposes a 50% reduction in landing and air traffic control fees in the aviation sector, exemption or reduction of port and inland waterway terminal fees, and consideration of including transportation fuel in the group of goods eligible for VAT reduction. These solutions aim to support transportation businesses in stabilizing operations and maintaining the market's recovery momentum.
TRADING STRATEGY
The stock market declined to 1,696 points with liquidity remaining low compared to the weekly average. There was a slight shift in capital flow from large-cap stocks to mid- and small-cap stocks in the real estate, construction, and materials sectors. Selling pressure was mainly concentrated in the financial services, energy, and chemical sectors. The VN-Index is likely to fluctuate around 1,685-1,710 points today.
The market experienced narrow-range consolidation around 1,700 points. Concerns about the multifaceted geopolitical situation at the end of the week led to a more cautious sentiment. Consequently, pressure to reduce portfolio weight reappeared in some sectors that had previously performed positively. Foreign investors resumed light net selling. The VN-Index is currently showing signs of forming a base to stabilize the supply-demand balance, while also monitoring global developments. In the optimistic scenario, when energy security-related factors no longer create major shocks to domestic fuel prices, the index is very likely to soon return to a new positive state, aiming to conquer the 1,730-1,750 point range. Investors should continue to hold and may consider increasing their holdings for medium-term strategic portfolios when supporting reversal movements appear accompanied by confirming signals. Short-term trading should be flexible according to cash flow developments.
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