Vietnam Insight

▶ The market went on to increase on Wednesday with support from many sectors, especially the Banking and Retail groups. Following the positive momentum from the end of the previous session, the index opened with an Up-gap and maintained a fairly good increase above the reference level for almost the entire trading session. Liquidity decreased again, lower than the 20-session average and foreign investors also returned to net selling, although with low volume.

▶ At the end of the trading session, the VN-Index increased by 13.87 points (+1.16%), reaching 1,211.00 points; HNX-Index increased by 3.74 points (+1.8%), reaching 211.45 points. Market liquidity reached VND 20.71 trillion, which was equivalent to about more than 978 million shares being traded. Foreign investors net sold VND 92 billion on HOSE, mostly concentrated in FPT, MWG and SHB. On the contrary, the typical net-bought tickers included BAF, VIC and HPG.

▶ Technical perspective: The market continued to show a recovery session and closed above the 1,200 threshold. The decreased liquidity indicated that the recovery session came from low selling pressure after a volatile session. In the current context, the market is still re-establishing a new balance zone.

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.