Vietnam Insight

▶ VN-Index posted a fourth consecutive rally in the midweek trading session. Vietnamese stock market continue to enjoy the rally thanks to the lift of heavy weighted industry, which is banking stocks.

▶ At the end of the trading session, VN-Index closed at 1,284, up by 0.9% while HNX closed at 238 points, slightly increased by 0.47%. The trading value was ticked up to VND20,651 billion. Meanwhile, foreign investors swing to net selling with the value at VND325 billion on the HOSE. In particular, top net sold tickers by foreign investors were HPG (-VND157 billion), MWG (-VND96 billion) and MSN (-VND75 billion).

▶ Technical perspective: The market continued the rally throughout the session and closed at the highest level of the session with liquidity continuously maintaining a high level. Currently, VNINDEX has approached the resistance zone of 1,280 - 1,300, which the index has tested 3 times before but failed. The current trend is to increase in the short term. In the medium and long term, the market has remained in the 1,280 zone for nearly 6 months. We expect the market to have a healthy correction in the coming time to be able to surpass the peak more successfully and convincingly. The corrections are good buying opportunities. The support and resistance are 1,230 and 1,300, respectively

Strategy: Investors can wait for corrections and rebounds at the support zone of 1,240 - 1,250. Selling pressure at the 1,280 area begins to appear as the price continues to rise, so investors should not chase the price at the moment.