Vietnam Insight

▶ On Wednesday's trading session, the market continued to maintain its upward momentum as the US presidential election results became increasingly clear. Although the excitement was evident during the session, many investors remained cautious and waited for clearer and more stable signs from the market. Trading volume remained lower than the 20-day average.

▶ At the end of the trading session, the VN-Index increased by 15.52 points (+1.25%), reaching 1,261.28 points; the HNX-Index increased by 2.90 points (+1.29%), reaching 227.76 points. Market volume reached VND14.2 trillion, equivalent to about 566.9 million shares traded. Foreign investors were net sold of VND 383 billion, mainly focusing on VHM, MSN, SSI.

▶ Technical perspective: After approaching the important support zone of EMA200 (1,240 points), VN-Index bounced back strongly. The developments of the US election helped improve market sentiment and attracted buyers back to the market. VN-Index created a gap up right at the beginning of the trading session, ending the session with a wide amplitude and improved liquidity, which is a positive signal for the market. If the VN-Index increases in the next trading sessions with improved liquidity and cash flow spreading to many industry groups, investors can consider increasing the proportion of stocks. In the opposite case, if the VN-Index loses the EMA200 with a wide candle body, the VN-Index will return to a downtrend and retest the 1,200-1,220 zone.

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 bounce back or wait to surpass 1,300. Investors can consider reducing the proportion of some stocks that violate technical signals.