Vietnam Insight

▶ The market increased since the opening and managed to maintain green color throughout the whole session. Foreign investors returned to net sell. Market liquidity remained almost unchanged and recorded a lower value than the 20-session average.

▶ At the end of the trading day, VN-Index increased by 5.26 points (+0.42%), closing at 1,262.76 points; HNX-Index increased by 1.44 points (+0.64%), reaching 228.51 points. Market liquidity reached VND 14.30 trillion, which was equivalent to about 621.42 million shares being traded. Foreign investors returned to net sell VND 479.57 billion, mainly concentrated in VCB, FPT and VTP.

▶ Technical perspective: The market opened with an up gap at the beginning of the session and managed to keep the green color throughout the session. At the end of the trading day, the market still successfully maintained a close score compared to the morning session and ended at 1,262 points. Generally, the index was traded sideways with narrow range and low liquidity despite recognizing variations among industry groups. In the upcoming sessions, it is likely that the VN-Index will continue to fluctuate around the 1,250 - 1,260 range until money flow returns. In the base case, VN-Index needs to form an absorption zone with a small amplitude as well as liquidity before entering the 1,290 - 1,300 strong resistance zone. 

Strategy: As many stocks have reached the target profit-taking thresholds, short-term investors can sell a part and take profit of the remaining part when VN-Index reaches the 1,300. Investors can increase their stock proportions but should not exceed 50% of the amount they are holding. And they should refrain from buying new ones until the index has successfully surpassed 1,300 or returned to re-test the 1,200 - 1,220 zone.