Vietnam Insight

▶The market experienced an increasing session thanks to the support from stocks in the Vingroup. Liquidity decreased and foreign investors continued their net selling streak, although the net selling value decreased compared to yesterday's session.

▶ At the end of the session, the VN-Index increased by 10.47 points (+0.8%), reaching 1,317.33 points; HNX-Index increased by 1.35 points (+0.58%), reaching 236.42 points. Market liquidity reached VND 16.75 trillion, which was equivalent to about 733.25 million shares being traded. Foreign investors net sold VND 439 billion on HOSE, mainly concentrated in SSI, MSN and FRT.

▶Technical perspective: VN-Index went through a recovery session after successfully testing the 1,300 support zone. The market fluctuated for most of the time and increased sharply towards the end of the session. Trading liquidity decreased sharply, which was indicative that the recovery appeared only when selling pressure was low and the market had supporting cash flow. Currently, the 1,300 level plays an important support role for the index. For the market to maintain its recovery, there needs to be a resurgence of cash flow in the upcoming sessions.

In the negative scenario (low probability), profit-taking force would turn strong and the significant support zone of 1,300 points would be invaded. We consider this support zone to play a key role in the continuation of the uptrend, as it is the support level on both the Daily and Weekly charts. A drastic price decline could negatively impact market sentiment. 

Strategy: The market has shown positive signals, breaking the sideways trading channel. VN-Index is likely to maintain the uptrend to move towards 1,350 points. Investors can increase their positions in decreasing sessions with average liquidity and small spreads. In the negative scenario, if VN-Index fails to keep 1,280 - 1,300 points, investors can reduce stock proportions to manage portfolio risk.