Vietnam Insight

▶ The market experienced a fluctuating session on Thursday and continued to keep sideways movements. The index retreated to 1,360 during the session but successfully pulled back slightly and closed around the reference level. The differentiation between industry groups was maintained with VIC and VHM turning down, putting pressure on the general market. Liquidity decreased and foreign investors also returned to slightly net selling. 

▶ At the end of the trading session, the VN-Index decreased slightly by 1.08 points (-0.08%), reaching 1,366.75 points; HNX-Index increased by 0.04 points (+0.02%), reaching 227.70 points. The liquidity of the whole market decreased to 21 trillion VND, which was equivalent to only about 890 million shares being traded. Foreign investors net sold 271 billion VND, focused in FPT, HPG and STB. On the other hand, GEX, SSI and CTG were the stocks with the most net purchases.

▶ Technical perspective: The market formed a doji candle with low amplitude, liquidity remained at a low level. Currently, VN-Index is moving in an uptrend when trading above MA 20/50/200, RSI is approaching the overbought zone, indicating the possibility of some fluctuations or re-accumulation.

- 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.