Vietnam Insight

▶ After yesterday brutal selloff trading session, the green is back on Vietnamese stock market and in line with Asia major indices. Domestic investors also welcomed a fresh interest rate cut on the open market operation at the end of yesterday. However, the cautious sentiment still maintain as the total trading turnover was at low level.

▶ At the end of the trading session, VN-Index gained by 1.87% to 1,210 while HNX closed at 226 points, up by 3.75 points. However, the trading value tumbled to VND16,355 billion. Meanwhile, foreign investors took a second consecutive net selling day with the value of VND750 billion on the HOSE. In particular, top net sold tickers by foreign investors were VJC (-VND357.9 billion), FPT (-VND114 billion), AGG (-VND112.8 billion), MWG (-VND112.5 billion)…

▶ Technical perspective: VN-Index increased strongly and the green color was maintained throughout the session. At the end of the session, VN-Index increased by nearly 22 points and back to the important support level at MA200 - equivalent to 1,200 points. Despite the recovery, the rally session has not fully regained all the yesterday’s lost. The short-term trend of the market is still correction, and the market can completely decrease again to establish a second trough. The current support and resistance zones are 1,175 and 1,240, respectively.

Strategy: Investors continue to observe the market's reaction at 1,170 - 1,200, waiting for the market to establish a new equilibrium price zone. In the rally sessions, investors should priority to sell the stocks that already met the cutloss threshold.