Vietnam Insight

▶ In the trading session on Monday, signs of bottom-fishing demand began to appear at the 1200 area, when the index fell sharply in the morning session, then retreated in the afternoon session. Liquidity remained at the average level of the last 20 sessions. The Securities group recorded good and widespread cash flow.

▶ At the end of the trading session, the VN-Index decreased by 1.45 points (-0.12%), reaching 1,217.12 points; the HNX-Index increased by 0.26 points (+0.12%), reaching 221.79 points. Market liquidity reached VND 15.5 trillion, equivalent to about 646.2 million shares traded. Foreign investors net sold VND 1,473 billion, mainly concentrated in SSI, VHM and MWG.

▶ Technical perspective: The market performed relatively negatively at the beginning of the session when it decreased significantly and approached the 1,200 point mark. At the important support zone that has been successfully defended many times, buying power appeared and helped the VN-Index increase by nearly 15 points from the bottom of the trading session. Since April 2024, the VN-Index has traded sideways in a wide range of 1,180-1,300 points. The RSI signal has entered the oversold zone, VN-Index is likely to have a recovery in the coming sessions. Since VN-Index is currently still trading below EMA200, investors should continue to observe and wait for a more suitable buying point in the coming time. If positive, VN-Index will rebound from the bottom of 1,200 points to EMA200 and successfully maintain this zone under short-term profit-taking pressure, then investors can consider increasing the proportion. In case VN-Index cannot return to EMA200, the downtrend will continue to be confirmed and the 1,180 point zone will be the next test zone.

Strategy: Investors maintain a low stock proportion and wait for the market to confirm a clearer buy signal. For stocks that violate technical signals, investors can reduce the proportion for the purpose of portfolio risk management.