Vietnam Insight

▶ On the Monday's trading session, the market was gloomy as the red still spread most of the industry groups. The pessimistic and cautious sentiment of the market caused many investors to stay on the sidelines to observe market fluctuations. However, bottom-fishing demand in the financial group tickers reversed the market trend, helping to balance the market at the end of the session. Trading volume remained lower than the 20-day average.

▶ At the end of the trading session, the VN-Index increased by 5.17 points (+0.42%), reaching 1,235.65 points; the HNX-Index increased by 0.13 points (+0.06%), reaching 219.62 points. Market volume reached VND 12.12 trillion, equivalent to about 519.7 million shares traded. Foreign investors were net sold of VND 72.1 billion, focusing on FPT, VPB, VRE.

▶ Technical perspective: VN-Index traded below reference throughout the morning session. When approaching the 1,220 point area, the purchase side appeared, helping VN-Index reverse the contemporary decline and up by nearly 13 points. With the principle of higher bottoms, VN-Index is showing positive reactions around the 1,200 - 1,220 point area (buyers regain control), with improved liquidity in the afternoon session. Compared to the last week recovery, the market recovered with a wider range, better liquidity and successfully tested the support area 3 times.

Strategy: The market shows positive signals when approaching the 1,200-1,220 point area. For short-term trading, investors can consider disbursing around this area and gradually taking profits when approaching 1,300 points. With a holding investment strategy, investors only strongly disburse when VN-Index successfully breaks out the 1,300 point area.