Vietnam Insight

▶ In Monday's trading session, Vn-Index continued to struggle in 1250-1260 mark, there was no clear breakthrough due to the lack of strong supporting factors. At the end of the trading session, the market witnessed the rise of the Technology group pulling the market back to the green. However, market volume remains low, indicating that investors are still in a cautious position in the face of unpredictable market developments.

▶ At the end of the trading session, the VN-Index increased by 2.05 points (+0.16%), reaching 1,254.77 points; HNX-Index decreased by 0.04 points (-0.02%), reaching 224.59 points. Market volume reached VND 10.9 trillion, equivalent to about 482.7 million shares traded. Foreign investors net sold VND 457.13 billion, mainly concentrated in MSN, HPG and DXG.

▶ Technical perspective: The index had its first recovery session after many consecutive days of decline, closing at 1254 points, near the MA200 support level. The market traded in a narrow range around 1250 – 1260 points. Volume is still at a low level, indicating that selling pressure has cooled down, but demand is still cautious. With the basic scenario, the market re-establishes the equilibrium zone around 1250 and will encounter the next resistance at 1270. With a negative scenario, if demand continues to be weak, the index is likely to return to test the 1,240 area to attract new cash flows. 

Strategy: Investors should maintain a holding position while the market is still in a sideways state. The buy recommendation needs to wait for the market to move towards the 1,270 area and have a tendency to bounce back up or wait for it to surpass 1,300.