Vietnam Insight

▶ The market fluctuated slightly in the trading session with relatively balanced number of stocks which increased and decreased. Foreign investors went on with a net selling session. Liquidity improved compared to yesterday but remained at a low level.

▶ At the end of the trading session, the VN-Index decreased by 1.38 points (-0.11%), reaching 1,249.83 points; the HNX-Index decreased by 0.04 points (-0.02%), closing at 225.29 points. Market liquidity reached VND 15.64 trillion, which is equivalent to about 673.4 million shares being traded. Foreign investors net sold VND 226.36 billion, mainly concentrated in VCB, MSN and MWG.

▶ Technical perspective: VNINDEX closed at 1,249.21 (-1.38 points, -0.11%) with liquidity below average. The market had 153 green stocks and 222 red ones. Leading industry groups such as finance, consumer goods, and basic materials decreased slightly. VN-Index hardly had any significant fluctuations during the session, as both buyers and sellers were still relatively hesitant in their trading activities. We believe that in the short term, moving in the range of 1,200-1,270 points will be the main trend of VN-Index.

If in the coming sessions, selling pressure appears around the 1,250 point area and VN-Index has a big decline when reaching the resistance zone of 1,250-1,260 points, the market is likely to retest the support zone of 1,200-1,210 points. In a more positive scenario if VN-Index successfully protects the 1,250 point area and increases with a wide amplitude and large trading volume, the short-term uptrend is confirmed, helping the index to retest the 1,300 point area.

Strategy: Investors should temporarily refrain from buying highly sensitive new stocks, prioritize observation and be ready to sell if the stock touches the price zone in the proposed scenario. Because the market is trading within the range, investors should prioritize disbursing once and closing their positions early, avoiding buying the many times when the price increases.