Vietnam Insight

▶ VN-Index continued to struggle as heading to the key resistance level of 1,280 – 1,300. While the banking sector muted, Vin group stocks enjoy a robust rally with VIC closed at ceiling price while VHM was deep in green lifted the market.

▶ At the end of the trading session, both VN-Index and HNX-Index unchanged at 1,280 and 238, respectively. The trading value was at VND16,189 billion. Meanwhile, foreign investors took the fifth consecutive net selling day with the value at VND259 billion on the HOSE. In particular, TLG (-VND 177 billion),  HPG (-VND83 billion) and VPB (-VND60 billion) were the top sold tickers.

▶ Technical perspective: The cautious buying trend continued to appear in the trading session. VN-Index traded with liquidity falling below average along with a narrow fluctuation range. The market is in a lack of fresh catalyst as business results and FED decision already priced in. Investors observing the market movement in the coming time to take appropriate actions. If the market maintains low-average liquidity in the down sessions and buying power appears with increased liquidity in the up sessions (ideally if VN-Index can break out to 1,300 with improved liquidity), investors can confidently increase their positions. On the contrary, if liquidity increases sharply, the range is wide in the down session and loses the support level of 1,250 points, investors can consider reducing the proportion to manage portfolio risk.

Strategy: Investors waiting for corrections and rebounds at the support zone of 1,240 - 1,250 to enter the market. Selling pressure at the 1,280 zone begins to appear as the price increases, so investors are advised not to chase the price.