Vietnam Insight

▶ Vietnamese stock market end in green on Monday to start the week, follow the recovery from last week. Market traded flat for most of the session, however, the VN-Index see a strong rally at the end of the session and close deep in the green.

▶ At the end of the trading session, VN-Index up by 0.54% to 1,230 while HNX closed at 230 points, up by 1.38 points. However, the trading value was flatted compared to last week and at low level at VND14,033 billion. Meanwhile, foreign investors took its second consecutive net buying streak with a small value at VND59 billion on the HOSE. In particular, top net bought tickers by foreign investors were HDB (+VND205 billion), FPT (+VND150 billion) and MWG (+VND142 billion).

▶ Technical perspective: VN-Index continues to maintain the recovery trend and the market sentiment has stabilized with this positive movement. However, this wave may still be just a technical recovery wave when the 1,240 - 1,260 zone is a strong resistance level. Therefore, we expect the market to have an accumulation phase and then break out of 1,260 to confirm the uptrend again. The current support and resistance zones are 1,200 and 1,250 respectively. With the basic scenario, the market can completely retest the 1,200 zone.

Strategy: Investors continue to observe the market movement, waiting for the market to establish a new equilibrium price zone. Investors should only enter the market with a low proportion because the 1,250 zone is a relatively strong resistance zone.