Vietnam Insight

▶ During Tuesday trading session, the market retested 1,300 level with liquidity maintaining at a relatively high level. At the closing, VN-Index ended with a slight decrease in points and was still above 1,300 points. Foreign investors continued their net-selling streak, with the selling force focusing on the stocks in the VN30 group.

▶ At the end of the trading session, the VN-Index decreased by 1.4 points (-0.11%), reaching 1,303.16 points; HNX-Index increased by 0.18 points (-0.07%), reaching 238.31 points. Market liquidity reached VND 22.05 trillion, which was equivalent to about 1.049 billion shares being traded. Foreign investors net sold VND 338 billion, with the highest selling value on FPT, HDB and VCB.

▶ Technical perspective: The market fluctuated strongly during the session, creating a candle with a leg at the closing and still remaining above the 1,300 points. Liquidity remained at a high level, showing that selling pressure appeared, however, demand was still considered positive. The EMA20 value at 1,271 plays as an important support for the trend. In a positive scenario, if the cash flow goes on increasing and the selling force doesn’t turn too strong, it is likely that the market will continue to gain points.  

Strategy: The market is following the main upward sideway trading trend. If trading in the short term, investors can wait until the VN-Index appears to correct around 1,270 for disbursing. With a buy-and-hold strategy, investors can increase their stock proposition when the VN-Index breaks out and successfully defends the 1,300 point zone, which may take some more sessions for VN-Index to maintain above the 1,300 points.