Vietnam Insight

▶ Vietnamese stock market quite muted with a low trading turnover. The fresh PPI data from US announced last night was not be able to lift the Vietnamese stock market sentiment.

▶ At the end of the trading session, VN-Index closed at 1,230 – unchanged compared to yesterday while HNX closed at 229 points, slightly downed by 0.22%. The trading value was also flat at VND13,004 billion, a cautious sentiment signal. Meanwhile, foreign investors accelerated its fourth consecutive net buying streak with the value at VND649 billion on the HOSE. In particular, top net bought tickers by foreign investors were KDC (+VND461 billion), MSN (+VND218 billion) and HDB (+VND197 billion).

▶ Technical perspective: The market flatted for the third consecutive sessions, showing the psychological pressure that investors are facing at this point. In the past month, the 1,240-1,250 area has experienced 2 decreases of more than 20 points while buying demand is quite weak. In a positive scenario, it is expected that the market sideway around 1,220-1,230 and await for a convincing breakout. The signal suggest that the downtrend is maintained although it has cross above the EMA 200 area with the recent recovery.

Strategy: Investors continue to observe the market's movement, waiting for the market to create a new equilibrium price area. Investors should only participate with a small proportion as the 1,250 area is a strong resistance area.