Vietnam Insight

▶ The market experienced a spectacular reversal in Thursday's trading session. Foreign investors returned to net buying position, which created momentum for the increase of the market. Liquidity also improved and exceeded the average of the last 20 sessions.

▶ In the end of the trading session, the VN-Index increased by 27.12 points (+2.19%), closing at 1,267.53 points; the HNX-Index increased by 4.98 points (+2.2%), reaching 229.60 points. Market liquidity reached VND23.57 trillion, which was equivalent to about 1.049 million shares being traded. Foreign investors net bought VND666.3 billion, mainly concentrated in HPG, MSN and FPT.

▶ Technical perspective: VNINDEX increased 27.12 points with liquidity 1.5 times higher than the average of 20 sessions, the highest liquidity since the beginning of October. Market unexpectedly soared strongly and shared similarities with several previous increases with increased liquidity after successfully testing the 1,200 zone. The scenario of the buying side appearing, causing the index to recover from the 1,240 zone, happened, which increases the likelihood of the index approaching the 1,300 resistance zone next week. We also note that VNINDEX has been trading in the range of 1,200 - 1,300 for more than half a year, so the pressure of profit taking activities at the 1,300 zone is very high. 

Strategy: As many stocks have reached the target profit-taking thresholds, short-term investors can partly realize profits and sell the remaining part when VNINDEX reaches the 1,300 zone. Investors can increase their holdings but should not exceed 50% of their current value, as well as refrain from opening new positions until the index successfully surpasses 1,300 or retests the 1,200 – 1,220 zone.