Vietnam Insight

▶ The market experienced an enthusiastic trading session accompanied with a gap up from the beginning and successfully maintained that momentum until the close. Foreign investors continued to net buy and their value mainly focused on the VN30 group. Trading volume improved significantly and was much higher than the 20-session average.

▶ At the end of the trading session, VN-Index increased by 13.68 points (+1.09%), reaching 1,274.04 points; HNX-Index increased by 1.45 points (+0.64%), reaching 229.81 points. Market liquidity reached VND 21.07 trillion, which was equivalent to about 955.12 million shares being traded. Foreign investors net bought VND 251.85 billion, focusing on SSI, HPG and STB.

▶ Technical perspective: The market surprisingly experienced an explosive trading session with higher liquidity than the 20-session average. However, selling pressure was still available when the index partly retreated and failed to close at its highest. The positive point from the return of foreigners’ net buying also supported the market well. The main leading group today was the Banking sector. However, the structure of the market has not changed as it has not been able to close above the 1,280 point; though short-term price momentum has slightly improved when MACD has crossed up the signal line. 

Strategy: Investors should observe the index’s reaction when it reaches resistance zone of 1,280 - 1,300 because this is the area where strong profit-taking actions take place. If VN-Index manage to exceed this level, do not rush to buy new shares; buyers should instead wait for the index to adjust and retest the explosive point to disburse, which is a less risky action. Short-term trading strategies are still prioritized and investors should take in to consideration two support and resistance levels of 1,200 and 1,300.