Vietnam Insight

▶ On Thursday's trading session, the market continued the excitement of the previous session. Stocks in the industry groups expected to benefit from Donald Trump's election as US president (exports, industrial real estate, etc.) spread the green across the market. However, profit-taking pressure quickly overwhelmed in the afternoon session, causing the market to cool down and return to balance.

▶ At the end of the trading session, the VN-Index decreased by 1.53 points (-0.12%), reaching 1,259.75 points; the HNX-Index decreased by 0.27 points (-0.12%), reaching 227.49 points. Market volume reached VND 12.5 trillion, equivalent to about 499.3 million shares traded. Foreign investors were net sold of VND 390.9 billion, mainly focusing on VHM, MSN, and CMG.

▶ Technical perspective: VN-Index continued to increase and created a gap up in the morning session. However, when approaching EMA20, the index faced resistance from the sellers and turned down slightly towards the end of the session. The more cautiousness of the buyers and increased selling pressure at technical resistance zones are relatively common developments after VN-Index had a wide range recovery session. In the coming sessions, if VN-Index increases with volume gradually improving as the uptrend continues, cash flow spreads to many industry groups, investors can consider increasing the proportion of stocks. On the contrary, if VN-Index loses EMA200 with a wide candle body, VN-Index will return to a downtrend and retest the 1,200-1,220 area.

Strategy: Investors should maintain an observation state and wait for the market to determine a short-term uptrend. Investors can wait to buy when the market rises above 1,270. If VN-Index fails to attract cash flow from buyers and loses EMA200, investors can reduce the proportion of stocks to manage risks.