Vietnam Insight

▶ The stock market continued to experience another volatile session and closed with a slight increase. Foreign investors went on with their net selling streak, although with limited value. Market liquidity decreased slightly compared to yesterday's session and was below the 20-session average.

▶ At the end of the session, VN-Index increased by 1.22 points (+0.1%), closing at 1,263.79 points; HNX-Index increased by 0.03 points (+0.01%), reaching 227.04 points. Market liquidity reached VND 13.95 trillion, which was equivalent to about 610.37 million shares traded. Foreign investors net sold VND 197.62 billion, mainly concentrated in HPG, BID and PDR.

▶ Technical perspective: The market recorded a slightly fluctuating session when demand cooled down in comparison to the previous one. Below-average liquidity showed that there was not enough pressure to form a risky state. Thus, VN-Index has had 7 consecutive sessions moving sideways with average liquidity. In the coming sessions, the market index is likely to fluctuate around the support zone of 1,250 - 1,260 points to re-test. In the base case, VN-Index needs to form an absorption zone with a narrow range and low 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 has successfully surpassed 1,300 points or returned to retest the 1,200 - 1,220 zone.