Vietnam Insight

▶ In Thursday's trading session, the market was divergent among industry groups. Foreign investors continued to sell off, affecting domestic investor sentiment. Negative rumors related to the BCG group also kept up the market red vibe. Market liquidity decreased slightly but remained at the same level as the 20-day average.

▶ At the end of the trading session, the VN-Index decreased slightly by 0.70 points (-0.05%), reaching 1,323.93 points; the HNX-Index increased by 0.49 points (+0.20%), reaching 245.77 points. Market liquidity reached VND 19.7 trillion, equivalent to about 918.9 million shares traded. Foreign investors were net selling of VND 1,409.2 billion, mainly focusing on FPT, TPB, HPG.

▶ Technical perspective: The VN-Index experienced a correction phase today, marked by significant selling pressure from foreign investors, which was offset by domestic buying. Intraday, rumors concerning TPB and ORS contributed to a noticable decline in the morning session. However, the selling momentum waned in the afternoon, allowing the VN-Index to recover over 5 points from its low and close near the reference level. The MACD indicator has turned negative over the past two sessions, suggesting the accumulating period. We anticipate the VN-Index will stabilize near the key support level of 1,300-1,310 points before potentially resuming its upward trend.

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.