Vietnam Insight

▶ On Monday's trading session, the market continued its downward trend with large selling force maintained throughout the trading session. Foreign investors reversed their position to net purchase with market volume recorded at a level higher than the 20-day average.

▶ At the end of the trading session, VN-Index decreased 10.14 points (-0.80%), reaching 1,254.64 points; HNX-Index decreased 2.14 points (-0.89%), reaching 238.38 points. Market volume reached VND 21.12 trillion, equivalent to about 923.6 million shares traded. Foreign investors were net purchase of VND 409.54 billion, focusing mainly on SBT, FPT, FUEVFVND.

▶ Technical perspective: The market continues to decline with a strong downward momentum, as no industry can maintain its green color. Although there is demand at the 1,250 area, in general the selling force is still overwhelming. Currently, the market has violated EMA 50 and is retesting the old support zone. In the following sessions, the market reaction will determine the trend for the rest of the year. If the buying force is strong enough to absorb the selling force in the 1,250-1,260 point area, the uptrend of VN-Index will still be the dominant trend. Therefore, investors need to be careful and observe more.

Strategy: Short trading investors can consider participating when the VN-Index shows signs of increasing at 1,250. With stocks that still maintain an uptrend and have a good fundamental foundation, investors can absolutely continue to hold.