Vietnam Insight

▶ On Thursday's trading session, cash stream flew strongly to banking stocks, leading and spreading green across the market, helping to improve investor sentiment. Trading volume improved and exceeded the 20-day average after a series of 8 consecutive sessions at a low level.

▶ At the end of the trading session, the VN-Index increased by 17.10 points (+1.38%), reaching 1,259.63 points; the HNX-Index increased by 2.0 points (+0.90%), reaching 222.67 points. Market volume reached VND13.2 trillion, equivalent to about 542.5 million shares traded. Foreign investors were net purchase of VND147.84 billion, focusing on SSI, HDB, VCB.

▶ Technical perspective: VN-Index had a strong increase, closing at the highest level of the session and crossing back above EMA50. Although liquidity remains low, there has been a significant improvement and demand shows acceptance to participate in the accumulation zone of 1240 - 1250. Market movements show signs of returning to positivity, the RSI indicator has reversed up and the MACD has entered a positive divergence. In the following sessions, VN-Index is likely to experience fluctuations when moving towards the resistance area of 1270 - 1280.

Strategy: The market is following a sideways trading trend. If trading short-term, investors can consider disbursing around the 1,220-point area and gradually taking profits when approaching 1,300 points. With a holding investment strategy, investors will only disburse strongly when VN-Index surpasses and successfully defends the 1,300-point area.