Vietnam Insight

▶The market continued its upward momentum with a fierce tug-of-war session on Thursday and closed with a long-legged candle with the support of the Steel sector. Trading between the two sides was quite active with outstandingly high liquidity. Lacking consensus, foreign investors continued their net selling streak.

▶ At the end of the trading session, the VN-Index increased by 4.84 points (+0.37%), reaching 1,307.80 points; the HNX-Index increased by 0.79 points (+0.33%), reaching 239.39 points. Market liquidity reached VND 20.98 trillion, which was equivalent to about 1.03 billion shares traded. Foreign investors net sold VND 639 billion on HOSE, mainly concentrated in STB, TPB and VCB.

▶ Technical perspective: The market continued to experience stronger fluctuations when testing the 1,300 zone. Liquidity increased at the end of the session after the market fluctuated, showing that demand had entered the market quite well. In the short-term, the EMA 20 at 1,282 plays an important supporting role 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.