Vietnam Insight

▶ Selling pressure continued and Vin Group stocks weakened are the reasons behind the decrease of VN-Index today. Though managed to anchor quite well in the morning session, it reversed to lose points in the afternoon session. The bright spot was that market liquidity decreased, showing that the selling pressure was not too strong. Foreign investors continued to net sell, mainly in FPT.

▶ At the end of the trading session, the VN-Index decreased by 17.49 points (-1.42%), reaching 1,210.30 points; the HNX-Index decreased by 0.83 points (-0.4%), reaching 209.41 points. Market liquidity was VND 21.09 trillion, equivalent to more than 925 million shares traded. Foreign investors net sold VND 272 billion on HOSE, mostly in FPT, HAH and HCM. On the contrary, VHM, VCI and ACB were stocks that were experienced relative good net-bought volume.

▶ Technical perspective: The market recorded the second declining session after a series of recovery phase lasting for 4 consecutive sessions. This development was quite reasonable when investors took action to take profits while the majority of stocks have recovered relatively 10 - 15% from the short-term bottom. Liquidity was not significant, showing that the selling pressure was not too strong. It is necessary to observe this area, if selling pressure increases with liquidity, investors should consider reducing the proportion and wait for the market to adjust to find a new balance zone; or until there is a signal of establishing an accumulation zone to re-test supply - demand before continuing to go up. 

Strategy: On the grounds that there are many fluctuations in the macro economy recently, investors should not catch the bottom when the amount of stocks from previous sessions may create strong selling pressure. It is necessary to wait for the market to build a stable price base before disbursing buying positions.