Vietnam Insight

▶The market continued to trade at the floor prices in the opening trading session after the Holiday. In contrast to the recovery of Asian markets, VN-Index fell sharply since the ATO session and maintained overwhelming selling pressure throughout the entire day. The decline in liquidity and the continuation of foreigners’ net selling streak were the highlights of today's session.

▶ At the end of the trading session, the VN-Index decreased by 77.88 points (-6.43%), reaching 1,132.79 points; HNX-Index decreased by 15.93 points (-7.34%), reaching 201.04 points. Market liquidity reached VND 27.64 trillion, which was equivalent to more than 1.3 billion shares being traded. Foreign investors net sold VND 1,723 billion on HOSE, mostly concentrated in MBB, VHM and FPT.

▶ Technical perspective: The market continued to record a strong correction since the beginning of the session and retreated to around 1,130 points, while failing to defend important support levels. Investor sentiment remains pessimistic and the market has not shown any signs of levelling off. The short-term uptrend was also been violated. Given that the uptrend has been broken, it will take a long time for the market to re-establish the trend, which requires a balance zone featured by the return of cash flow. 

Strategy: Investors should not rush to buy the bottom as the index may continue to decrease. It is necessary to wait for the market to build a price base for at least 2-3 sessions. For stocks that has violated the short-term cutloss threshold, investors should sell those stocks for risk management.