HIGHLIGHTED NEWS
According to data from the Vietnam Steel Association (VSA), in the first six months of the year, finished steel production reached 15.825 million tons, up 9.7% year-over-year. Finished steel sales totaled 15.727 million tons, an increase of 10.2%; of which exports accounted for 2.845 million tons, down 32.5% compared to the same period last year. Heading into the second half of the year, the construction steel market is expected to continue facing many challenges. Prices of raw materials such as iron ore, coking coal, and steel billets remain volatile, potentially putting pressure on finished steel prices. In addition, rising investment from domestic and Southeast Asian steel projects poses the risk of production overcapacity. Moreover, developments in the Chinese steel market are also a key factor. If China increases output, leading to oversupply and lower export prices, it will impact steel prices across the region and in Vietnam. Conversely, if China continues to inject capital into infrastructure, boosting domestic demand, it could reduce exports and drive international steel prices upward. Amid a market full of intertwined risks, the acceleration of public investment disbursement and signs of recovery in the domestic real estate market are expected to serve as positive drivers for domestic construction steel demand in the latter half of the year.
TRADING STRATEGY
The stock market closed in the red at 1,493 points, with trading liquidity reaching an all-time high. Selling pressure surged, particularly in highly sensitive sectors such as financial services, banking, and real estate. On the other hand, green was seen in select individual stocks from the oil & gas and fertilizer sectors. The VN-Index is expected to fluctuate within the 1,485–1,505 point range today.
The market experienced significant volatility after surpassing its historical peak. Cautious sentiment aimed at securing profits and doubts over the index’s ability to sustain its upward trend led to widespread profit-taking and portfolio rebalancing. Foreign investors continued strong net selling for the second consecutive session. Overall, market fluctuations after breaking a major resistance level are normal and do not affect the VN-Index’s medium-term uptrend. However, in the short term, the market may need more time to absorb supply pressure and stabilize cash flow before resuming a positive trajectory. The index’s support zone is around 1,460–1,480 points. Investors can continue holding their medium- to long-term strategic portfolios while flexibly managing short-term holdings to seize upcoming investment opportunities.
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