Vietnam Insight

▶ In the trading session on Tuesday, the market continued to be on fire and spread across many industry groups. Foreign investors maintained a strong net selling momentum, creating negative sentiment that affected many domestic investors. Market volume showed signs of drying up, recording lower than the 20-session average.

▶ At the end of the trading session, the VN-Index decreased by 11.97 points (-0.98%), reaching 1,205.15 points; the HNX-Index decreased by 2.11 points (-0.95%), reaching 219.68 points. Market volume reached VND 13.25 trillion, equivalent to about 511.9 million shares traded. Foreign investors were net sold of VND 1,675.6 billion, focusing on VHM, FPT, HDB.

▶ Technical perspective: The selling side continued to dominate, VN-Index decreased by nearly 12 points and mostly occurred at the end of the trading session. Since April 2024, VN-Index has traded sideways in a wide range of 1,180-1,300 points. VN-Index is currently trading below EMA200, so investors should continue to observe and wait for a more suitable buying point in the coming time. The downtrend is still dominant and the 1,180-1,200 point area will be the next testing area of ​​the market. We expect to see stronger action from the buyers and if VN-Index successfully holds this area, the index may reverse to an uptrend momentum in the short term.

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