Vietnam Insight

▶ On Wednesday's trading session, the red vibe kept spreading over the market, continuing the downward trend in the morning session. However, selling pressure gradually cooled down as cash flow from bottom-fishing demand entered the market, helping the market reverse and close in green. Volume improved, reaching a level higher than the 20-session average.

▶ At the end of the trading session, the VN-Index increased by 1.22 points (+0.10%), reaching 1,246.04 points; the HNX-Index decreased by 0.48 points (-0.21%), reaching 226.21 points. Market volume reached VND 15.3 trillion, equivalent to about 660.5 million shares traded. Foreign investors were net sold of VND 174.96 billion, focusing on VPB, SSI, HPG.

▶ Technical perspective: The tug-of-war continued to be evident during the trading session, VN-Index at times decreased by more than 10 points, but buying pressure appeared in the afternoon session, helping the index return to green. VN-Index is likely to continue moving sideways around 1,240-1,270 points in the coming time. In order to break out and increase points, the increase of VN-Index needs to be accompanied by improved liquidity. In the negative case, if VN-Index loses EMA200 with a wide candle body, VN-Index returns to the downtrend and retests the 1,200-1,220 zone.

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 surpasses 1,270. If VN-Index fails to attract cash flow from buyers and loses EMA200, investors should reduce the proportion of stocks to manage risks.