Vietnam Insight

▶ Follow last week booming session, Vietnamese stock market’s rally keeps going to open the week. The market was covered in green for the whole trading session, however, liquidity contracted as total turnover dropped compared to the previous trading session.

▶ At the end of the trading session, VN-Index closed at 1,261, up by 0.75% while HNX closed at 236 points, slightly increased by 0.37%. The trading value was tumbled to VND16,781 billion. Meanwhile, foreign investors accelerated its net selling streak with the value at VND309 billion on the HOSE. In particular, top net sold tickers by foreign investors were VHM (-VND77 billion), HPG (-VND72 billion) and TCB (-VND50 billion).

▶ Technical perspective: The market opened with a gap up nearly 10 points and cross above the MA50, then had a retest before continuing the good increase. However, the cash flow at the end of the session showed signs of slowing down. With VNI approaching the resistance level, the market may experience a correction in the following sessions. For the market to return to a sustainable uptrend, the market needs more time to accumulate around the new support zone of 1230 or lower, to absorb selling pressure.

Strategy: Investors continue to observe the market's movement and wait for the market to create a new equilibrium price zone. Investors should only participate with a low proportion because the 1,250 zone is a relatively strong resistance zone.