Vietnam Insight

▶ In Monday's trading session, banking stocks rose from the beginning of the session, spreading the green vibe to many industry groups. However, profit-taking pressure put many stocks under pressure and reversed. Market liquidity decreased slightly but remained higher than the 20-day average.

▶ At the end of the trading session, the VN-Index increased by 4.23 points (+0.32%), reaching 1,330.28 points; the HNX-Index increased by 1.09 points (+0.46%), reaching 239.50 points. Market liquidity reached VND 22.8 trillion, equivalent to about 1,022.5 million shares traded. Foreign investors were net selling of VND 575.66 billion, mainly focusing on FPT, SSI, FRT.

▶ Technical perspective: The VN-Index began the trading week with a modest 7-point gap-up, initially fueling optimistic momentum that persisted through the morning session. However, this upward drive encountered significant resistance as the day progressed. In the afternoon, sellers asserted dominance, effectively curbing the previously enthusiastic buying sentiment. Trading volume remained notably high, yet the price action signaled a surge in selling pressure, ultimately leading to a Doji candlestick close. Following a robust five-week rally from the January trough, a corrective retracement is now anticipated, deemed essential for the market to consolidate gains before resuming its upward trajectory.

Based on the observed price dynamics, the VN-Index has transitioned into a bullish technical posture, aligning with the positive scenario outlined in our prior analysis. It is anticipated that the VN-Index will trend towards the 1,350 level, though with intermittent corrective trading days.

Strategy: The market is following the main sideway trading trend. For short-term trading, investors can consider disbursing when VN-Index shows a correction around 1,280-1,300. With a holding strategy, investors can disburse more when VN-Index breaks out and successfully defends the 1,300 point zone.