Vietnam Insight

▶The market continued with a trading session featuring high liquidity on Wednesday. The positive point was that the index remained above the 1,300 points level with strong momentum coming from the Brokerage industry under the impact of positive news on KRX and market upgrading. Foreign investors continued their net-selling streak with relatively stable value.

▶ At the end of the trading session, VN-Index decreased by 0.2 points (-0.02%), reaching 1,302.96 points; HNX-Index increased by 0.12 points (+0.12%), reaching 238.60 points. Market liquidity reached 18.83 trillion VND, which was equivalent to about 898 million shares being traded. Foreign investors net sold 297 billion VND, mainly concentrated in STB, CTG and HPG.

▶ Technical perspective: The market is trading in a narrow range with fluctuations testing the 1,300 zone. The slightly reduced liquidity and the breadth leaning towards the selling side show that the selling pressure has increased somewhat but the pressure was not too great. 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.