Vietnam Insight

▶ Before the declaration of a ceasefire between Israel-Iran, the market showed positive reaction with an increase from the market opening and maintained positivity throughout the entire trading session. The stock sector that went against the market today was the Oil and Gas sector when reacting to the falling oil prices. The pillars that supported the VNIndex was still VIN stocks, which contributed a large part in index's growth. Increased liquidity showed an improvement in cash flow and foreign investors also returned to net buying.

▶ At the end of the trading session, the VN-Index increased by 8.59 points (+0.63%), reaching 1,366.77 points; the HNX-Index increased by 0.37 points (+0.16%), reaching 227.79 points. The market liquidity reached 28.6 trillion VND, which was equivalent to about 1.13 billion shares traded. Foreign investors reversed to net buy VND 229 billion during the session, focusing mostly on VND, SSI and HPG. On the other hand, HCM, VPB and VCB were the stocks that were net sold the most.

▶ Technical perspective: The market recorded an increasing session with an improved demand after a short accumulation period. Liquidity increased above average level, indicating a lift in demand. However, the closing candle created a gap, showing the hesitation of the cash flow when the bullish status was not really convincing. Currently, VN-Index is moving in an uptrend, the trend will continue if the selling pressure does not appear too strong.

- 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.