Vietnam Insight

▶ On the Wednesday's trading session, the market was revived thanks to the green vibe spreading across most industry groups. Many positive news helps strengthen investors' believe ahead of implementing the KRX system in the near future. Volume enhanced but was still lower than the 20-day average, showing that investors are still cautious towards the bull trap correction.

▶ At the end of the trading session, VN-Index increased 12.82 points (+2.40%), reaching 1,205.61 points; HNX-Index increased 5.24 points (+2.35%), reaching 227.87 points. Market volume reached VND 19.8 trillion, equivalent to about 820.1 million shares traded. Foreign investors were still net sold of VND 242.65 billion, focusing mainly on FUEVFVND, VHM, HDB.

▶ Technical perspective: The market recovered strongly but at the volume lower than the 20-session average and not commensurate with this increase. Although VN-INDEX can maintain the support area around MA100, MACD is still sloping down, illustrating no clear signs of completely reversal scenario. The market trend is still looking for balance, to be expected that VN-Index can continue to bounce back to the 1,230 resistance area corresponding to EMA 50.

Strategy: Investors should prioritize structuring stocks with weak positions, complying with discipline as well as prioritizing capital preservation.