Vietnam Insight

▶ On the Monday's trading session, the stock market had a dreadful session when the red vibe stage of many tickers quickly spread and change to the blue-sky base of being floored. Volume increased dramatically, ending the 20-day streak of lower than average volume by a painful session.

▶ At the end of the trading session, VN-Index decreased 59.99 points (-4.70%), reaching 1,216.61 points; HNX-Index decreased 11.62 points (-4.81%), reaching 229.71 points. Market liquidity reached 33.6 trillion VND, equivalent to about 1,455.9 million shares traded. Foreign investors were net sold strongly VND 1,238.1 billion, focusing mainly on VHM, CTG, and SSI.

▶ Technical perspective: VN-Index opened with a blink of green then instantly sold off heavily in the afternoon. High volume shows pessimism and active selling force. Widespread panic caused many stocks to fall to floor levels, including blue chips in the VN30. VN-Index lost the MA50 support level and signaled a medium-term correction. However, with such a shock reduction, it is expected that VN-Index will have a technical recovery. Investors should note that the nearest support level for VN-Index is 1,180.

Strategy: Investors take advantage of the recovery period to handle stocks with technical violations, comply with discipline and prioritize capital preservation.