Vietnam Insight

▶ In Wednesday's trading session, the main trend of the market was sideways with liquidity staying below the 20-session average level. Stocks’ movements showed great differentiation, and the foreign investors continued to net buy, although with quite modest value.

▶ At the end of the trading session, the VN-Index was almost unchanged with a decrease of 0.02 points, reaching 1,366.75 points; HNX-Index decreased by 0.13 points (-0.06%), reaching 227.66 points. Market liquidity reached 24.1 trillion VND, which was equivalent to about 993 million shares being traded. Foreign investors net bought 177 billion VND during the session, mostly concentrated in HPG, VHM and VND. On the contrary, SHB, GEX and EIB were the stocks with the most net sales in value.

▶ Technical perspective: The market index increased to the 1,370 zone at the beginning of the session, but the trend weakened afterwards and traded below the reference level. Liquidity decreased to the average level along with the small-length candlestick, which indicated the hesitation of short-term cash flow. Currently, VN-Index is moving in an uptrend, the trend will continue if the selling pressure does not appear too large. 

- 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.