Vietnam Insight

▶ The market started the session with increasing points but quickly fell below the reference level due to selling pressure and remained in redness until the afternoon session ended. In the end, the index closed slightly down. The mild decline in liquidity showed hesitation on both sides of supply and demand while foreign investors returned to net-selling position.

▶ At the end of the trading session, the VN-Index decreased by 3.65 points (-0.27%), reaching 1,342.09 points; the HNX-Index increased by 0.35 points (+0.16%), reaching 231.19 points. Market liquidity reached VND 21.68 trillion, which was equivalent to more than 973 million shares traded during the session. Foreign investors returned to net selling position with a total net value of VND 476 billion, the selling value concentrated in STB, VHM and VIC. On the other hand, MSN, VND and SSI were the three stocks with the strongest net buying force.

▶ 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.