Vietnam Insight

▶ Stock market ended in green color after a series of small sideways and corrections, although the increase was still limited. Foreign investors’ selling and buying amount was quite balanced. Market liquidity remained sluggish when the trading value was below the average of 20 sessions, showing the cautiousness of money flow.

▶ At the end of the trading session, the VN-Index increased by 4.28 points (+0.34%), closing at 1,266.00 points; the HNX-Index increased by 0.54 points (+0.24%), reaching 227.43 points. Market liquidity reached VND 14.79 trillion, which was equivalent to about 639.55 million shares being traded. Foreign investors net bought VND 5.35 billion, mainly concentrated in FPT, HDB and HPG.

▶ Technical perspective: The market continued to record a trading session with a narrow price range and exhausted liquidity, which showed that the short-term money flow has not improved yet. In general, VN-Index is still in an accumulation phase to attract the liquidity to return. In the coming sessions, it is likely to fluctuate around the 1,250 – 1,260 point area to test support. In the base case, VN-Index needs to form an absorption zone with a narrow range as well as liquidity before entering the strong resistance area 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.