Vietnam Insight

▶ The market endeavored to make up for yesterday's decline in today's trading session. Liquidity improved slightly but remained at a low base level. Foreign investors maintained their net selling momentum, and individual investors were the main driving force behind the market's increase today.

▶ At the end of the trading session, VN-Index increased by 7.11 points (0.58%), reaching 1,236.18 points; HNX-Index increased by 1.28 points (0.58%), reaching 219.55 points. Market liquidity reached VND 11.66 trillion, which was equivalent to about 556.32 million shares traded. Foreign investors net sold VND 404.87 billion, mainly concentrated in FPT, STB and HPG.

▶ Technical perspective: VN-Index increased slightly by more than 7 points with a significant recovery of the public investment and construction materials groups. The market did not express strong selling pressure when the T+2.5 stocks in investors’ accounts turned sellable. Small fluctuations and low liquidity in recent sessions were indicators that the wait-and-see mentality was still observed at investors before Tet Holiday. In the positive scenario, VN-Index will form a wide green candle in the following sessions, confirming the control of the buyers and helping VN-Index to test the old peak of 1,300. In a negative scenario, VN-Index will continue to decrease sharply, losing the uptrend on both daily and weekly charts. Then the next support will be the 1,180-1,200 point area. 

Strategy: The market is showing positive signals as it approaches 1,200-1,220 points. For trading in the short term, investors can consider disbursing around this area and gradually taking profits when the index approaches 1,300 points. With a buy-and-hold strategy, investors should only disburse strongly when VN-Index successfully breaks out and upholds the 1,300 point area.