Vietnam Insight

▶ Under the correction pressure of VIC shares when reaching the floor price, VN-Index started the trading week with a decreasing session. The index opened around the reference price and stayed in red most of the time. Liquidity continued to remain at a low level, showing the cautiousness of cash flow. Foreign investors reversed to net buy slightly.

▶ At the end of the trading session, VN-Index decreased by 12.05 points (-0.99%), reaching 1,207.07 points; HNX-Index decreased by 1.63 points (-0.76%), reaching 211.47 points. Market liquidity reached VND 20.41 trillion, which was equivalent to more than 996 million shares traded. Foreign investors net bought VND 167 billion on HOSE, mostly concentrated in FPT, VIC and E1VFVN30. On the contrary, typical net-sold stocks included HCM, TPB and VNM.

▶ Technical perspective: The market continued to feature a session moving sideways, re-accumulating in the 1,200 - 1,240 range. The slight decrease in liquidity showed that the selling pressure in the correction session was not too strong. In the current context, VN-Index is still re-establishing a new balance zone. 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 that have formed in the recent periods, slightly containing a relatively large amount of potential supply and demand).

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.