Vietnam Insight

▶ On Monday's trading session, the market was less positive in the morning session, affected by the banking stocks. However, the export, technology, and industrials stocks immediately attracted cash flow in the afternoon session, helping to cool down the red market. Trading volume increased sharply and was higher than the 20-day average level.

▶ At the end of the trading session, the VN-Index decreased by 2.24 points (-0.18%), reaching 1,250.32 points; the HNX-Index decreased by 0.02 points (-0.01%), reaching 226.86 points. Market volume reached VND 19.6 trillion, equivalent to about 796.5 million shares traded. Foreign investors were net sold of VND 957.3 billion, focusing on MSN, CMG, and STB.

▶ Technical perspective: The negative technical signals on last week session partially affected the market sentiment in the morning session. The banking group drew attention when they all fell sharply, while cash stream flew into industry groups such as export and industrials. In the afternoon session, when VN-Index approached EMA200, buyers appeared, absorbing all the selling pressure in the market and helping VN-Index cool down the decline. VN-Index is likely to continue moving sideways around 1,240-1,270 points in the coming time. To be able to break out and increase points, volume improvement is a necessary factor. In the negative case, if VN-Index loses the 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 the EMA200, investors should reduce the proportion of stocks to manage risks.