Vietnam Insight

▶ In Tuesday's trading session, stock market showed positivity from the beginning of the session with green colors spreading across many industry groups. Foreigners continued to record a net buying session, signaling a positive sign for the market though at a low level. Liquidity has improved compared to the previous session but was still lower than the 20-day average.

▶ At the end of the trading session, the VN-Index increased by 7.43 points (+0.6%), reaching 1,242.13 points; HNX-Index increased by 1.45 points (+0.65%), reaching 223.70 points. Market liquidity amounted to VND 13.29 trillion, equivalent to about 575.1 million shares traded. Foreign investors were recorded net purchase of VND 228.43 billion, mainly concentrated in FPT, DPM, MSN.

▶ Technical perspective: The market continued its good recovery trend but there were signs of selling pressure. Both the upside and liquidity were low, indicating that buyers and sellers were both quite cautious. In general, the recent recovery was mainly due to the increase in large stocks and the spread momentum was weak. The market is following its recovery scenario to the 1,280 area as it did in the previous two times. However, we expect a few corrections around the 1,250 area this week, as we see that the recovery momentum might be unsustainable.

Strategy: Investors temporarily should stop buying new stocks with high beta characteristics, prioritize observation and be ready to sell if the stock reachs the price range as mentioned in the above scenario. Since the index is trading in a range, investors should prioritize disbursement at one time and close positions early, avoid buying at multiple times when the price goes up.