Vietnam Insight

▶ In Wednesday's trading session, the market remained green in the morning, led by the single ticker VRE of Vin, then turned down towards the end of the session. Investors are cautious as the market has been in a period of volatility in recent times. The continued net selling pressure of foreign investors is the basis for the above caution. Market liquidity decreased and was lower than the 20-day average.

▶ At the end of the trading session, the VN-Index decreased by 5.83 points (-0.44%), reaching 1,326.09 points; the HNX-Index decreased by 3.23 points (-1.32%), reaching 241.33 points. Market liquidity reached VND 18.8 trillion, equivalent to about 834.6 million shares traded. Foreign investors were net selling VND 512.5 billion, mainly concentrated on FPT, TPB, DBC.

▶ Technical perspective: Heading into the AGM season, the VN-Index is exhibiting signs of an accumulation phase. This is evidenced by a reduction in trading volume and decreased liquidity in recent sessions, accompanied by a modest spread between buying and selling prices. Despite experiencing slight corrections, the VN-Index continues to trade above its 50-day EMA, currently around the 1,300 level, indicating a degree of underlying support. Crucially, domestic investors have been instrumental in absorbing foreign selling pressure. To drive the index higher, a significant increase in buying interest from sidelined investors will be required.