Vietnam Insight

▶ In Thursday's trading session, after a sharp decline in the morning session, the market tried to move towards the reference level in the afternoon session. However, the effort to narrow the decline was not enough when the red vibe was still consistent in most industry groups. Market volume remained lower than the 20-day average.

▶ At the end of the trading session, the VN-Index decreased by 6.80 points (-0.55%), reaching 1,223.56 points; the HNX-Index decreased by 1.14 points (-0.50%), reaching 228.54 points. Market volume reached VND 11.54 trillion, equivalent to about 497.1 million shares traded. Foreign investors were net purchase of VND 119.9 billion, focusing mainly on VNM, FPT, CTG.

▶ Technical perspective: The market continued another volatile session with low volume. This shows the cautious sentiment from investors. The pulling force in the session mostly came from the VN30 pillar group, while steel stocks continued to probe the bottom. The market has had a strong recovery from 1190, so profit-taking pressure from investors is reasonable. In a positive scenario, the market needs to create a sideways range around 1230, waiting for the cash stream to join and break out of the 1230-1240 resistance area.

Strategy: Investors should continue observing the market flow, waiting it to create a new equilibrium price zone. Investors should only invest at a low proportion level as the 1,250 is a relatively strong resistance threshold.