Vietnam Insight

▶ The stock market continued to experience a closely contested struggle and closed below the reference price. Foreign investors had a fourth consecutive net selling session. Market liquidity decreased compared to yesterday and was slightly lower than the average value of last 20 sessions.

▶ At the end of the trading session, VN-Index decreased by 1.51 points (-0.12%), closing at 1,267.35 points; HNX-Index decreased by 0.19 points (-0.08%), closing at 227.99 points. Market liquidity reached VND 15.16 trillion, which was equivalent to about 642.31 million shares being traded. Foreign investors net sold VND 295.43 billion, mainly concentrated in FPT, MSN and FRT.

▶ Technical perspective: The market moved in sideways and had some fluctuations during the session. Thus, VN-Index has had 5 consecutive sessions moving sideways around 1,270 points zone with average liquidity. Cash flow remained stable and rotated to industry groups to maintain the market trend. Currently, VN-Index has not shown any strong selling pressure. In the coming sessions, VN-Index is likely to fluctuate around the support zone of 1,260 points for testing. In the base case, VN-Index needs to form an absorption zone with a narrow range as well as little liquidity before entering the strong resistance zone of 1,290 - 1,300. 

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 VNINDEX reaches the 1,300 zone. Investors can increase their stock proportions but should not exceed 50% of the amount are holding. And they should refrain from buy new stocks until the index successfully surpasses 1,300 points or returns to retest the 1,200 - 1,220 zone.