Vietnam Insight

▶ Under the influence of the world financial market, Vietnam stock index maintained the red color since the beginning of the trading session. Notably, foreign investors resumed to their net selling with increased value. Market liquidity improved and trading value was about 1.5 times compared to yesterday.

▶ At the end of the trading session, VN-Index decreased by 11.33 points (-0.89%), closing at 1,254.67 points; HNX-Index increased by 0.11 points (+0.05%), reaching 227.54 points. Market liquidity reached VND 20.7 trillion, which was equivalent to about 935.34 million shares being traded. Foreign investors returned to net selling VND 479.57 billion, mainly concentrated in SSI, VPB and VCB.

▶ Technical perspective: The market consistently stayed in red throughout the trading session and ended with a 11-point decrease while VN-Index was approaching the MA20 support level. Improved trading volume showed that selling pressure has grown, meanwhile buying pressure was not strong enough when VN-Index touched 1,250 point. In the upcoming sessions, VN-Index will likely continue to approach the 1,250 – 1,260 zone until it attracts the money flow back. In the base case, VN-Index needs to form an absorption zone with a narrow range as well as volume 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.