Vietnam Insight

▶ Profit-taking pressure showed itself on Tuesday with the appearance of the first declining session after a series of four consecutive recoveries. The recorded liquidity saw no difference from yesterday and was approximately the 20-session average trading volume. Foreign investors reversed to net-buying position of more than 200 billion VND on HOSE.

▶ At the end of the trading session, the VN-Index decreased by 13.65 points (-1.1%), reaching 1,227.79 points; the HNX-Index decreased by 4.76 points (-2.21%), reaching 210.24 points. Market liquidity reached 26.21 trillion VND, which was equivalent to about more than 1.2 billion shares being traded. Foreign investors net bought slightly 214 billion VND on HOSE, mostly concentrated in HPG, MWG and VCB. The largest net-selling value was contributable to VHM, HCM and KBC.

▶ Technical perspective: The market recorded a sideways session and is likely forming an accumulation phase after the recovery. Unchanged liquidity showed that selling pressure was not too strong, the correction session was only for re-establishing the trend. 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 catch the bottom when the bottom-fishing volume from previous sessions may turn sellable, creating strong selling pressure. It is necessary to wait for the market to build a stable price base before entering a buying position.