Vietnam Insight

▶ The final trading session to close 2024 was in red and featured weak demand. Foreign investors returned to be net sellers with an average value. Market liquidity continued to be at low level, which was indicative of the of cash flow’s cautiousness.

▶ At the end of the trading session, VN-Index decreased by -5.24 points (-0.41%), reaching 1,266.78 points and HNX-Index decreased by -0.71 points (-0.31%), reaching 227.43 points. Market liquidity amounted VND 13.04 trillion, which was equivalent to about 565.42 million shares traded. Foreign investors net sold VND 301.56 billion, mainly concentrated in VCB, BID and STB.

▶ Technical perspective: The market continued to record a sideways session featured by low liquidity. VN-Index had a session returning to retest the MA20 support with low liquidity, indicating that the selling pressure was not strong but the cash flow tended to cool down. We expect that the market would continue to rotate cash flow between industry groups until a clear signal is formed to announce the establishment of a new trend. In the positive scenario, the market needs stronger demand to be able to return to the resistance of 1300.

Strategy: Investors should observe the index's reaction when it approaches 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.