Vietnam Insight

▶ The market fluctuated within a narrow range during the trading session and closed with a slight decrease. Foreign investors continued to net sell, although with a small volume. Market liquidity nearly remained unchanged and was approximately the same amount as yesterday.

▶ At the end of the trading session, VN-Index decreased by 3.21 points (-0.25%), closing at 1,268.86 points; HNX-Index decreased by 1.06 points (-0.46%), reaching 228.18 points. Market liquidity reached VND 17.19 trillion, which was equivalent to about 728.74 million shares being traded. Foreign investors net sold VND 179.14 billion, mainly concentrated in VRE, MWG and DGC.

▶ Technical perspective: VN-Index had 4 consecutive sessions of sideways movement around 1,270 zone with average liquidity, which showed that there was still selling pressure when VN-Index approaches this zone. This is quite normal when the 1,270 - 1,300 zone has been a strong fluctuation zone throughout this year. In the coming sessions, VN-Index is likely to fluctuate around the support zone of 1,260 points. In the base case, VN-Index needs to form an absorption zone with a narrow range as well as low liquidity before entering the strong resistance zone of 1,290 - 1,300. 

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