Vietnam Insight

▶ On Monday's trading session, the market was on fire as selling pressure continued to accelerate. Large cap stocks spread the red vibe, causing negative sentiment towards many investors. Market volume improved, reaching the 20-day average level.

▶ At the end of the trading session, the VN-Index decreased by 10.18 points (-0.81%), reaching 1,244.71 points; HNX-Index decreased by 0.96 points (-0.43%), reaching 224.45 points. Market volume reached VND 15.8 trillion, equivalent to about 709.7 million shares traded. Foreign investors were net sold of VND 673.18 billion, mainly focusing on MSN, VHM, FPT.

▶ Technical perspective: After confirming a technical recovery at the end of the week, VN-Index fell at the beginning of the session and continuously widened its decline during the trading session. Liquidity was at an average level with a wide candle body showing that the sellers were still dominating. The downtrend will still be the main trend in the short term until a new equilibrium is found. We believe that the EMA200 area will see more bottom-fishing buying pressure.

Strategy: Investors should maintain an observation status and wait for the market to determine a new equilibrium point before entering. 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. Investors can consider reducing the proportion of some stocks that violate technical signals.