Vietnam Insight

▶ In the trading session on Monday, the market opened with green spreading across many industry groups. However, profit-taking pressure quickly prevailed, causing the market to turn back close to the reference level. In the afternoon session, positive news from the US and China reaching an agreement to temporarily lower interest rates increased optimism about the upcoming negotiation results between Vietnam and the US. The buyers dominated, significantly improving market liquidity, maintaining a level close to the 20-day average.

▶ At the end of the trading session, the VN-Index increased by 15.96 points (+1.26%), reaching 1,283.26 points; the HNX-Index increased by 1.91 points (+0.89%), reaching 216.04 points. Market liquidity reached VND 21.64 trillion, equivalent to about 902.9 million shares traded. Foreign investors net sold VND294.12 billion, mainly concentrated in VCB, HPG, STB.

▶ Technical perspective: Positive information from tariffs between the US and China added confidence to investors in the market in the second half of the afternoon session. Liquidity improved slightly with the recovery of the main industry group, banking, helping the VN-Index increase positively about 1 hour before trading time. However, in general, the recent increase in VN-Index has a small spread and the trading value is around the average, showing that the general sentiment is still cautious.

Strategy: Investors who prefer to hold for the long term can consider disbursing stocks with good foundations, with accumulation bases with low proportions. It is possible to focus on stocks that benefit from domestic factors in some industries such as: Steel, banking, securities, energy... VN-Index is moving towards the resistance zone of 1,300-1,320 points, investors should maintain stocks at a moderate level to manage risks.