Vietnam Insight

▶ In Wednesday's trading session, foreign selling pressure surged, leading to continued red spread across many industry groups. Although market indices recorded slight corrections, many large-cap stocks such as technology, retail, and banking fell sharply due to being the target of many foreign investors' sell-offs. Market liquidity remained at the 20-day average level.

▶ At the end of the trading session, the VN-Index decreased by 6.34 points (-0.48%), reaching 1,324.63 points; the HNX-Index decreased by 1.75 points (-0.71%), reaching 245.28 points. Market liquidity reached VND23.5 trillion, equivalent to about 949.3 million shares traded. Foreign investors were net selling of VND1,405.6 billion, mainly focusing on FPT, MWG, and VPB.

▶ Technical perspective: Following an eight-week uptrend, the VN-Index underwent a predictable correction. The magnitude of the decline remained within typical fluctuations, accompanied by trading volume consistent with the 20-day average. Notably, most blue-chip stocks held key support levels, indicating no sign of widespread panic selling. This correction is viewed as a healthy consolidation phase, potentially strengthening the market's long-term upward trajectory. Furthermore, these price declines present attractive entry points for investors on the sidelines. Key support level for VN-Index in short-term would be around 1,300 points.

Strategy: The market has shown positive signals, breaking the sideways trading channel. VN-Index is likely to maintain the uptrend to reach 1,350 points. Investors can increase their positions in down sessions with average liquidity and small spreads. In the negative case, losing 1,280-1,300 points, investors can reduce the proportion to manage portfolio risk.