Vietnam Insight

▶ On Thursday's trading session, the market maintained its green color in the morning session thanks to the improvement in real estate and securities stocks. However, demand was not strong enough along with profit-taking pressure continuing the excitement of the previous session, causing the market to reverse and close with liquidity approximately at the 20-day average.

▶ At the end of the trading session, VN-Index decreased 2.14 points (-0.17%), reaching 1,283.80 points; HNX-Index increased 0.84 points (+0.34%), reaching 245.39 points. Market volume reached VND 18.52 trillion, equivalent to about 697.2 million shares traded. Foreign investors were net purchase of VND 5.7 billion, focusing mainly on HDB, STB, PC1.

▶ 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 fluctuated in a narrow range with lower-than-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.