Vietnam Insight

▶ The market formed a Gap-up after the ATO session, despite fierce fluctuations throughout the session, it still managed to end the trading day in green points. Liquidity was approximately the same as yesterday and still lower than the 20-day average. Foreign net selling value increased dramatically, mainly from negotiated transactions of VIC shares.

▶ At the end of the session, the VN-Index increased by 6.18 points (0.5%), reaching 1,242.36 points; HNX-Index increased by 1.3 points (0.59%), reaching 220.84 points. Market liquidity reached 14.39 trillion VND, equivalent to about 569.29 million shares traded. Foreign net selling was more than 3,000 billion VND, mainly concentrated in VIC, FPT and STB.

▶ Technical perspective: The market has not showed any significant changes in the last 3 trading sessions. The volatility of the whole market was low, with some stocks increased well thanks to their own stories such as VND (relating to Trung Nam bonds). Small fluctuations and low liquidity in recent sessions signaled that investors' waiting mentality was still maintained in the period before Tet Holiday. In the positive scenario, VN-Index will show a wide green candle in the following sessions, confirming the control of the buyers and leading the market to test the old peak of 1,300. In a more negative scenario, VN-Index will continue to decrease sharply with a wide body, 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 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 buy-and-hold strategy, investors should only disburse strongly when VN-Index breaks out and successfully upholds the 1,300 point area.