Vietnam Insight

▶ In line with the movement of the Asian stock markets, cautious sentiment prevailed throughout the Vietnam stock market for the trading day. Domestic investors await this week’s FED meeting about the interest rate decision before taking any action.

▶ At the end of the trading session, VN-Index downed slightly by 0.12% to 1,245, HNX closed at 235 points, slipped by 1.65 points. However, the trading value slightly improved as total turnover on HOSE reached VND12,578 billion or up by 20%DOD. Meanwhile, foreign investors took a second consecutive net selling day with the value of VND327 billion on the HOSE. In particular, top net sold tickers by foreign investors were HVN (-VND40.6 billion), HAH (-VND35.9 billion), PDR (-VND31.9 billion)...

▶ Technical perspective: Liquidity continues to remain low, VN-Index appears a Doji candlestick. After recovering from EMA200, buyers are still relatively cautious to observe further market movement. Meanwhile, sellers remain weak with no strong selling pressure appeared around the trading range of 1,230-1,260 points. The short- and medium-term uptrend will depend on how the market performs at the resistance range of 1,260 - 1,220 points. If it cross over the EMA20 and EM50, the market will have more buyers to support the uptrend for the rest of 2024.

Strategy: Investors continue to observe market movement at the support range of 1,220-1,230 points, and can consider entering the market when a reversal signal appears and VN-Index returns above EMA50. Investors can continue to hold stocks that are still on an upward trend and have solid fundamentals. Investors should reduce the long position of stocks that violate technical signals and have disappointing earnings performance in the coming time.