Daily Market Watch 02/07/2025: Optimism Surrounding Tariff Lifts Equity Prices

THE EQUITY MARKET

The market remained range-bound around the reference level during the morning session before jumping in the afternoon. Overall sentiment notably improved as we observed, particularly among retail investors. Rumors regarding upcoming tariff policies circulated throughout the day. One such rumor suggested Vietnamese goods may be classified into three categories:

o       100% made-in-Vietnam goods: current tariff rates maintained,

o       goods with over 50% Vietnam-originated value: 15–18% tariff,

o      goods with less than 50% Vietnam-originated value: 18–22% tariff.

These figures appear favorable to investors, especially in comparison with speculation that Thai goods may face an 18% tariff across the board—potentially giving Vietnam a competitive edge. While we refrain from commenting on the validity of these rumors, more concrete details may emerge in the coming days.

The VN-Index closed the day with 0.49% gain as upbeat sentiment spread across the board. Small- and mid-cap stocks outperformed thanks to heightened activity from retail investors. Notable gains were seen across this segment, while large-cap stocks traded relatively quietly. Exceptions included BCM and SSI, both advancing on company-specific developments. Market breadth was positive, with 204 gainers versus 109 decliners.