Vietnam Insight

▶ In Wednesday's trading session, the Vn-Index continued to accumulate with volume not too large compared to the previous 2 sessions. The market was divided with downward pressure from the pillar group (VHM, VCB, VNM) while the Midcaps and Penny groups tried to support the index with weak cash flow. Currently, the market is still looking for a balance point, and cash flow is still low, mainly small speculative transactions with high risk.

▶ At the end of the trading session, the VN-Index decreased by 3.15 points (-0.25%), reaching 1,258.63 points; the HNX-Index increased by 0.32 points (+0.14%), reaching 225.88 points. Market liquidity reached 12/7 trillion VND, equivalent to about 536.8 million shares traded. Foreign investors net sold VND149.81 billion, mainly in MSN, STB and VHM.

▶ Technical perspective: VN-Index fluctuated within a narrow range, closed the session slightly down and filled the gap of yesterday's session. The market traded at a low liquidity level, showing that demand is not ready to join. The index continues to move on the MA200 with an accumulation trend around here. With the basic scenario, the index will test the resistance level around 1270, if it is successfully conquered, the index will head towards 1,280. With the negative scenario, if the demand continues to be weak, the index will likely return to test the 1,250 zone to attract new cash flow.

• Strategy: Investors should maintain a holding status when the market is still in a sideways state. The buying recommendation is to wait for the market to move towards the 1,270 zone and have a tendency to rebound or wait for it to surpass 1,300.