Vietnam Insight

▶ The market index increased in today's trading session despite the high differences between industry groups. The number of decreasing stocks dominated, but the increase in prices of some large-cap stocks such as VIC, TCB... helped the index close in green. Liquidity was still quite sluggish and even lower than yesterday. Foreign investors increased their net selling value with an amount of nearly 900 billion VND.

▶ At the end of the trading session, the VN-Index increased by 5.21 points (+0.39%), reaching 1,352.04 points; the HNX-Index decreased by 0.64 points (-0.28%), reaching 227.56 points. Market liquidity reached 20.7 trillion VND, which was equivalent to about 901 million shares traded. Foreign investors increased their net selling activity with a value of 893 billion VND, mostly concentrated in FPT, VHM and STB. On the other hand, DGW, SSI and CTG were the typical net-bought stocks.

▶ Technical perspective: The market recorded a tug-of-war session around the old peak. Liquidity fluctuated below the average level within a low fluctuation range, showing that demand was still hesitant. In addition, the large divergence also showed that the cash flow was not strong enough. Sideways is still considered the main trend, and the factor that could lead to a significant change in the trend has not showed itself up yet. 

- In the positive case: If the index manages to maintain the EMA50 when facing of short-term profit-taking pressure from the market, along with positive updates from tax negotiations from Vietnam; then this will open up a positive signal to help investors confidently disburse in the upcoming time.

- In the base case: If Vietnam has no new progress on tax agreements, the main trend will still be trading sideways and waiting for a clearer confirmative signal from the market.

Strategy: Investors should temporarily stop buying new stocks that have increased a lot, because cash flow can take profits and switch to stocks that are trading below MA200/MA50. For new positions, priority can be given to stocks among the real estate and banking sectors that are in low price ranges, accompanied with tight accumulation bases. However, the disbursement ratio should also be kept low.