Vietnam Insight

▶ The market experienced a strong tug-of-war session, however, the selling pressure was absorbed quite well and the VN-Index successfully managed to close in the green color. Trading volume continued to decrease, even lower than yesterday's session. Foreign investors net sold more than 4,500 billion, however, the value was mainly concentrated in VIC shares through put-through transactions.

▶ At the end of the trading session, the VN-Index increased by 6.95 points (+0.57%), reaching 1,217.25 points; the HNX-Index increased by 0.17 points (+0.08%), reaching 209.58 points. Market liquidity reached 23.02 trillion VND, which was equivalent to about more than 906 million shares traded. Foreign investors net sold 4,641 billion VND on HOSE, mostly concentrated in VIC, VNM and VCB. On the contrary, typical net bought stocks included MWG, VHM, and FPT.

▶ Technical perspective: The market was under continued profit-taking pressure during the session and recovered quite well after reaching the 1,200 threshold. At the end of the session, the index increased by nearly 7 points with the support of Vin Group stocks and the banking group reversed to increase. Liquidity was not too large, showing that selling pressure was not too strong. It is necessary for investors 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; or when there is a signal of establishing an accumulation zone to re-test supply and demand before continuing to go up. Currently, the short-term support zone of the index is 1,170 - 1,180 and the nearest resistance zone is 1,270 (corresponding to the price gaps formed in the recent period, where a relatively large amount of potential supply and demand stands). 

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.