Vietnam Insight

▶ In Tuesday trading session, the market formed a spectacular candle with a long leg and closed with a 10-point decrease, considerably less than the sharpest drop of nearly 70 points during the session. Starting with the real estate sector showing correction signals right from the morning, selling pressure spread throughout the overall market in the afternoon, resulting in many stocks to drop by 5-7%. However, the participating demand made VN-Index recover quite well. Liquidity increased in such a volatile session and foreign investors increased their net buying value.

▶ At the end of the trading session, the VN-Index decreased by 9.94 points (-0.82%), reaching 1,197.13 points; the HNX-Index decreased by 3.76 points (-1.78%), reaching 207.71 points. Market liquidity reached 36.89 trillion VND, which was equivalent to more than 1.89 billion shares being traded. Foreign investors net bought VND 508 billion on HOSE, mostly concentrated in HPG, MWG and STB. On the contrary, typical net-sold stocks included FPT, KBC and VNM.

▶ Technical perspective: The market showed a strong volatile session and recovered at the end of the session. The strong increase in liquidity showed that the selling pressure during the session was relatively large. However, the candle's leg withdrawal status recorded the real demand factor accepting to support the price at the 1,160 area. 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 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.