Vietnam Insight

▶ The market started the trading week with an increasing gap of 4.32 points, although there was selling pressure immediately after that which brought the index close to the reference, it still successfully closed with an increase of nearly 5 points. The market was supported by some banking representatives such as VCB, TCB, BID. Liquidity of the whole market continued to remain low with the return of net buying by foreign investors. 

▶ At the end of the trading session, the VN-Index increased by 4.63 points (+0.34%), reaching 1,376.07 points; HNX-Index increased by 1.41 points (+0.62%), reaching 229.22 points. Liquidity of the market remained stable at VND 20.6 trillion, equivalent to only about 789 million shares traded. Foreign investors net bought VND 592 billion during the session, mostly concentrated in MSN, NLG and DBC. On the other hand, HPG, VHM and BID were the stocks that suffered the most selling pressure.

▶ Technical perspective: The market recorded an increasing session fluctuating within a narrow range. Liquidity continued to remain at a low level, showing that demand has not improved much. The momentum for the increase was mainly due to low selling pressure. Currently, VN-Index has been moving in an uptrend. If the selling pressure continues to be insignificant, VN-Index is likely to maintain this upward momentum.

In the positive case: The market maintains MA50 against short-term profit-taking pressure from the market, along with positive news from tax negotiations from Vietnam. This will open up a positive signal to help investors confidently disburse in the coming time.

In the base case: Vietnam has no new progress on tax negotiations, the main trend will still be trading sideways and waiting for clearer signals from the market.

Strategy: Investors should temporarily stop buying new stocks that have increased and prioritize holding instead. When considering new buying positions, investors should participate with a low proportion and prioritize groups that closely follow the support of MA 20/50/200 and are in an uptrend. Real estate, banking, and energy groups which are in low price ranges and have been forming accumulation bases are considered as attractive sectors.