Vietnam Insight

▶ The market experienced an increasing trading session at the beginning of the week. After 2 consecutive net buying sessions, foreign investors returned to net selling. Market liquidity remained good and was approximately at the average level of the last 20 sessions.

▶ At the end of the session, VN-Index increased by 3.7 points (+0.29%), closing at 1,273.84 points; HNX-Index increased by 0.28 points (+0.12%), reaching 229.21 points. Market liquidity reached VND 18.54 trillion, which was equivalent to about 861.07 million shares being traded. Foreign investors net sold VND 481.1 billion, mainly concentrated in FPT, KBC and CMG.

▶ Technical perspective: VN-Index had a sideways session as it approached the resistance of 1,280. The market fluctuated in a narrow range around the reference price throughout the session. Overall, market movement remained stable and the supply of the previous two sessions was absorbed quite well. Liquidity was at the average amount with the breadth leaning towards the green side, showing that demand was at a good level. In the basic scenario, VN-Index will establish a narrow sideways range before entering the strong resistance zone of 1,290. 

Strategy: As many stocks have reached the target profit-taking thresholds, short-term investors can sell a part, and take profit of the remaining when VN-Index reaches the 1,300 zone. Investors can increase their proportions of stocks but the amount should not exceed 50% of the stocks they are holding. And investors should refrain from buying new stocks until the index surpasses 1,300 or moves back to retest the 1,200 - 1,220 zone.