Vietnam Insight

▶ The market development showed almost no change with narrow fluctuations during the session and ended with a slight decrease. Foreign investors increased their net selling volume. Market liquidity remained low and was below the average value of the last 20 sessions.

▶ At the closing of the trading session, VN-Index decreased by 2.07 points (-0.16%), reaching 1,261.72 points; HNX-Index decreased by 0.15 points (-0.07%), reaching 226.89 points. Market liquidity was VND 13.89 trillion, which was equivalent to about 579.91 million shares being traded. Foreign investors net sold VND 669 billion, mainly concentrated in FPT, MWG and NLG.

▶ Technical perspective: The market recorded a session with slight fluctuations when demand cooled down in comparison to the previous session. Overall, the market index is still above the MA20 line while this indicator is gradually improving with an upward movement and not showing any significant risks. Up to now, VN-Index has experienced 8 consecutive sideways sessions with low-to-average liquidity. In the upcoming sessions, VN-Index is likely to fluctuate around the 1,250 - 1,260 zone to test support as well as establish an accumulation zone. In the base scenario, VN-Index needs to form an absorption zone with a narrow trading range accompanied with 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 VN-Index 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.