Vietnam Insight

▶ The market experienced the opening session of the week with fluctuations within a narrow range and sideways movement considered as the main trend. Foreign investors were net buyers with the their value mainly concentrated in the Banking group. Trading volume decreased slightly and was lower than the 20-session average. 

▶ At the end of the trading day, VN-Index decreased by -3.12 points (-0.24%), reaching 1,272.02 points; HNX-Index decreased by -0.99 points (-0.43%), reaching 228.14 points. Market liquidity reached VND 12.89 trillion, which was equivalent to about 613.17 million shares being traded. Foreign investors net bought VND 357.21 billion, mainly concentrated in STB, CTG and PDR.

▶ Technical perspective: The market stayed in its decreasing stage throughout the session with low liquidity. At the end of the trading day, the market index decreased slightly and closed at 1,270 points. We forecast that the the money flow will rotate between industry groups until a clear signal is formed to announce the establishment of a new trend. In the short term, the VN-Index is likely to return to the 1,280 point resistance with demand being considered stable. In a more positive scenario, the market needs stronger demand to be able to return to the 1,300 resistance.

Strategy: Investors should observe the index's reaction when it approach the resistance zone of 1,280 - 1,300 because this is an area where strong profit-taking actions take place. If the index surpasses this level, do not rush to buy new shares, but instead wait for the adjustment sessions in order to reduce risks. Short-term trading strategies are still prioritized and investors need to consider the two support and resistance levels of 1,200 and 1,300, respectively.