Vietnam Insight

▶ On Thursday's trading session, red continued to spread all sectors with overwhelming selling pressure. However, supply showed signs of exhaustion as volume dropped sharply, recording below the 20-day average.

▶ At the end of the trading session, VN-Index decreased 5.28 points (-0.43%), reaching 1,233.19 points; HNX-Index decreased 0.92 points (-0.39%), reaching 235.25 points. Market volume reached VND 11.72 trillion, equivalent to about 484.4 million shares traded. Foreign investors were net sold of VND 489.35 billion, focusing mainly on SSI, TLG, and VHM.

▶ Technical perspective: Volume decreased sharply with a narrow spread near EMA200, showing that selling force has weakened significantly but buyers are still watching to wait for clearer signals. In the coming sessions, if volume continues to remain at a low level with small fluctuation and is followed by an increasing session with a large spread, this could be a relatively reliable reversal signal for the market. The RSI momentum index is close to the oversold level and unless the VN-Index loses the EMA200, we do not estimate the possibility of a strong decline of the VN-Index.

Strategy: Investors continue to observe market developments at the support zone of 1,220-1,230 points, and may consider disbursing when a reversal signal appears and VN-Index returns above EMA50. With stocks that still maintain an uptrend and have good fundamentals, investors can absolutely continue to hold. Investors should reduce the proportion of stocks that violate technical signals and have poor business fundamentals in the near future.