Vietnam Insight

▶ Despite a fresh PMI data came out this morning suggest a solid recovery of domestic manufacturing sector and FED dovish statement about the rate path, cautious sentiment continued to prevail throughout the Vietnam stock market for the trading day.

▶ At the end of the trading session, VN-Index downed by 0.12% to 1,226 while HNX closed at 229 points, slipped by 6.13 points. However, the trading value surged to VND21,396 billion. Meanwhile, foreign investors swing to net buying with the value of VND115 billion on the HOSE. In particular, top net bought tickers by foreign investors were VCB (+VND191.8 billion), VNM (+VND158.6 billion), MWG (+VND105.7 billion)...

▶ Technical perspective: VN-Index fell for most of today's session and closed at almost the lowest level, erasing all last week’s gain. The market sentiment suggest a strong selling pressure while buyers were quite muted. Thus, the index has returned toward the EMA 200, equivalent to 1,220 points. In a less positive scenario, if VNINDEX cross below this threshold, the possibility of further decline to the 1,180 zone is relatively high. The EMA 200 threshold is currently a quite important supportive level that needs to be closely observed.

Strategy: Investors continue to observe market reaction at the supportive zone of 1,220 points to take appropriate actions. Investors can lower long position with a safe portfolio status regarding current market movement.