Vietnam Insight

▶ Market index experienced adjustments in the Wednesday’s trading session. Foreign investors maintained their net selling momentum with increasing volume in many industry groups. Market liquidity also increased slightly compared to the previous session and was approximately at the 20-day average.

▶ At the closing, the VN-Index decreased by 9.42 points (-0.75%), reaching 1,240.41 points; the HNX-Index decreased by 0.67 points (-0.3%), reaching 224.62 points. Market liquidity reached VND 13.93 trillion, equivalent to about 575 million shares being traded. Net selling value of foreign investors was VND 652.3 billion, mainly concentrated in MWG, FPT and VRE.

▶ Technical perspective: Short-term profit-taking pressure appeared, causing VN-Index to lose nearly 10 points. Foreign investors maintained their net selling position, liquidity increased to the average level and the index closed near the lowest price. This movement is showing that the selling side has returned to dominate after a series of consecutive recovery sessions from 1,200 points to 1,250 points. Trading within the range is still the main trend of the index. Therefore, VN-Index is likely to move towards the 1,200-1,210 point range to retest in the upcoming trading sessions.

In a more positive scenario, if the buying side appears to help stop the decline and the index recovers positively from the 1,220-1,240 point range (according to the technical principle that the following bottom is higher than the previous bottom), this will be a positive signal for the market's recovery.

Strategy: Investors should observe and wait for a clearer disbursement signal. For stocks that has violated the trading principles, investors can reduce their proportions to manage short-term risks.