Vietnam Insight

▶ Selling pressure remained present in Wednesday's trading session, causing the market to keep losing points and the recovery session that investors has been longing for did not appear. Although there was certain moments when buying force emerged during the session, leading the index to even surpass the reference price, the increase failed to persist for long and the sellers still dominated eventually. Liquidity increased and foreign investors reversed to net buy were the highlights of today's session.

▶ At the end of the trading session, the VN-Index decreased by 38.49 points (-3.4%), reaching 1,094.30 points; the HNX-Index decreased by 8.47 points (-4.21%), reaching 201.04 points. Market liquidity increased to VND 35.35 trillion, which was equivalent to about more than 1.8 billion shares being traded. Foreign investors net bought slightly VND 248 billion on HOSE, mostly concentrated in MWG, FPT and TCB.

▶ Technical perspective: The market continued to record a strong correction session from the opening of the trading session, causing the index to fall deeply and fail to uphold the 1,100 level. Trading liquidity increased with the appearance of a recovery state, which indicated that the buying force supported the price in certain moments during the session. However, the current selling force in the market is still considered relatively substantial. Given the fact that the uptrend has broken, it will take a lot of time for the market to re-establish the trend, which requires the index to form a balance zone – featured by the return of the cash flow.

Strategy: Investors should not rush to buy the bottom as the index may continue its falling phase. It is necessary to wait for the market to form a price base for at least 2-3 sessions. For stocks that has violated the short-term cutloss threshold, investors should clear their positions to manage risks.