Vietnam Insight

▶ The market continued the upward trend of the first session of the week with a gap of 4.74 points with stable demand spreading across most sectors and liquidity maintained at a high level after the information that the US and other countries' taxes are beneficial to the Vietnamese market. The market's upward momentum was also supported by pillar stocks of sectors including VHM, HPG, VCB.

▶ At the end of the trading session, the VN-Index increased by 13.40 points (+0.96%), reaching 1,415.46 points; the HNX-Index increased by 1.78 points (+0.75%), reaching 237.68 points. The liquidity of the whole market remained impressive at VND 31.0 trillion, equivalent to only about 1.398 million shares traded. Foreign investors net bought VND 1,512 billion during the session, mostly concentrated in HPG, FPT and SSI. On the other hand, VCB, MWG and KDH were the stocks that suffered the most net selling pressure.

▶ Technical perspective: Following the increase at the end of the previous session, VN-Index opened the session positively, increasing by more than 6 points. VN-Index increased quickly and decisively, along with the transaction value exceeding the average and the fact that foreign investors maintained strong net buying, which is a good signal to reinforce the market's upward trend in the coming time. However, technical signals such as RSI are currently entering the overbought zone (80 points), we expect there may be fluctuations in the short term.

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.