Vietnam Insight

▶ The market continued its recovery momentum in the first trading session of the week with great momentum from Vin group stocks when VIC and VHM hit the ceiling prices. Market liquidity dropped to approximately the 20-session average and gentle foreign net-selling value was a highlight of today's session.

▶ At the end of the trading session, the VN-Index increased by 18.98 points (+1.55%), reaching 1,241.44 points; HNX-Index increased by 1.66 points (+0.78%), reaching 215.00 points. Market liquidity reached VND 26.51 trillion, which was equivalent to more than 1.18 billion shares being traded. Foreign investors net sold slightly VND 114 billion on HOSE, mostly concentrated in FPT, HCM and VNM.

▶ Technical perspective: The market continued to record a recovery session when moving towards the EMA50 resistance zone (1,273 points). The decrease in liquidity indicated that the recovery session happened in a context where selling force did not cause much pressure. Taking into consideration that the uptrend has broken, the market needs time for re-establishment. This requires a balance zone featured by the return of the cash flow. 

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.