Vietnam Insight

▶ On Wednesday's trading session, the market reversed when the VN30-stock group was under profit-taking pressure from investors, causing many industry groups to be covered in red in the afternoon session. Market volume was approximately the 20-day average.

▶ At the end of the trading session, VN-Index decreased 7.77 points (-0.60%), reaching 1,285.94 points; HNX-Index decreased 1.12 points (-0.46%), reaching 244.54 points. Market volume reached VND 21.83 trillion, equivalent to about 751 million shares traded. Foreign investors were net sold of VND 1,030.91 billion, focusing mainly on FPT, MWG, and VCB.

▶ Technical perspective: VN-Index showed selling pressure when approaching the 1,300 point resistance, while buyers were more cautious at this short-term old peak area. However, VN-Index was in a narrow range with average volume showing no signs of sell-off from sellers. This is likely just a profit-taking action after many consecutive increasing sessions of the market. VN-Index is currently still in an uptrend as it is above all three lines of EMA 20, EMA 50 and EMA 50. The psychological 1,300-resistance-threshold will be an important resistance area to watch in the near future. In case VN-Index surpasses this resistance area, plus the financial statements results consistent with investors' expectations, demand will increase and boost VN-Index in the near future.

Strategy: This week's trading session is still supporting the main trend of VN-Index to be upward momentum. Investors can increase the proportion around the EMA50 area. In case the financial statement results are not as expected, selling pressure may appear strongly in the low price range. If VN-Index falls below EMA50, investors can consider reducing portfolio proportion.