Vietnam Insight

▶ Follow yesterday recovery, Vietnamese stock market continued to close in green. However, the recovery momentum of the market is quite weak and mostly contributed by the strong gain of VHM. The signals, again, show a cautious sentiment maintained after the selloff on Monday.

▶ At the end of the trading session, VN-Index gained by 0.46% to 1,215 while HNX closed at 227 points, up by 1.5 points. However, the trading value downed to VND14,192 billion. Meanwhile, foreign investors accelerated the selling pressure as the net selling value was VND1,389 billion on the HOSE. In particular, top net sold tickers by foreign investors were VHM (-VND719 billion), VPB (-VND117 billion), HPG (-VND111 billion).

▶ Technical perspective: VN-Index had a second session of recovery in term of points, but market liquidity was quite low. Although the market closed in the green, the points were mainly pulled by large-cap stocks such as VIC VHM VRE. The short-term trend of the market is still down 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 session, Investors should priority to sell stocks that meet the cutloss threshold.