Vietnam Insight

▶ The market went on with a session featuring moderate trading activities around the reference level, accompanied with contradictory movements between industry groups. In the end, the index decreased slightly with liquidity remaining around the 20-session average value. After yesterday's strong net buying session, the foreign sector’s buying and selling value was kept in balance today. 

▶ At the end of the trading session, the VN-Index decreased by 1.74 points (-0.13%), reaching 1,345.51 points while the HNX-Index increased by 1.25 points (+0.55%), reaching 230.19 points. Market liquidity amounted to VND 25.78 trillion, which was equivalent to more than 1.2 billion shares traded. Foreign investors bought and sold in balance with a total net selling value of VND 13 billion. Selling value concentrated mostly in VHM, STB and DXG while EIB, DBC and VND recorded strongest net buying value on the other hand.

▶ Technical perspective: The market recorded a sideways session around the old peak. Liquidity remained at an average level and did not indicate a sudden change in supply and demand. In general, the movement is considered normal when VNIndex fluctuates around the old peak. In the phase of re-testing the old peak, cash flow will be an important factor in determining the index's ability to break out.

In the positive scenario: The market manages to maintain the EMA50 against short-term profit-taking pressure, supported with positive information from tax negotiations. This will serve as a positive signal to help investors improve their confidence. 

In the base scenario: Vietnam has no new progress on tax agreements, the main trend would remain trading sideways and waiting for clearer signals from the market.

Strategy: Investors should temporarily stop buying new stocks that have experienced significant increases, because short-term cash flow can take profits and move to stocks that are trading below MA200/MA50. For new buying positions, priority can be given to real estate and banking groups that are moving in low price base with an accumulation base, however, the disbursement ratio should maintain at a low level.