Vietnam Insight

▶ In response to President Trump's announcement to postpone the tax for another 90 days and only keep the rate at 10%, the Vietnamese stock market joined the world market with a dizzying "turnaround". Most stocks hit the ceiling right from the beginning of the session and remained in purple until the end of the day with a substantial volume buy order at the ceiling price. The overwhelming buying force in the context of limited supply resulted in trading liquidity reaching its lowest level since the beginning of the year. Foreign investors returned to net sell VND 830 billion on HOSE.

▶ At the end of the trading session, the VN-Index increased by 74.04 points (+6.77%), reaching 1,168.34 points; the HNX-Index increased by 15.74 points (+8.17%), reaching 208.32 points. Market liquidity reached VND 8.1 trillion, which was equivalent to more than 480 million shares being traded. Foreign investors net sold VND830 billion on HOSE, mostly in KBC, TLG and CTG.

▶ Technical perspective: In response to the US President’s announcement of the tariffs postponement in 90 days, the market opened at the ceiling price for almost all stocks. Liquidity was recorded at the lowest level as selling pressure appeared to be extremely weak. Currently, the main trend is still considered downward, and the increasing sessions are considered as opportunities to clear positions of stocks that has violated support levels and are directly negatively impacted by import tariffs. The 1,080 - 1,160 point area is expected to be the new bottom area and the index will tend to accumulate around this zone. Moreover, the 1,200 - 1,220 point area will be the reference resistance in the upcoming time, taking into account that the index has fallen dramatically sharply, breaking the support trendline in this area. 

Strategy: Investors should not rush to buy the bottom in tomorrow's session when the amount of stocks bought in the bottom-seeking sessions turn sellable, which means strong selling pressure could potentially appear. Investors are advised to wait for the market to form a stable price base before thinking of entering a buy order.