Vietnam Insight

▶ The market's upward momentum has not shown any signs of weakening with the consensus of domestic and foreign investors. The market opened with a strong gap of 5.66 points with strong demand distributed across most industry groups. The market's upward momentum spread and was greatly contributed by the banking pillar VCB and Vingroup stocks including VHM and VIC. 

▶ At the end of the trading session, the VN-Index increased by 15.86 points (+1.12%), reaching 1,431.32 points; the HNX-Index increased by 0.95 points (+0.40%), reaching 238.63 points. The liquidity of the whole market remained impressive at VND 41.6 trillion, equivalent to only about 1.787 million shares traded. Foreign investors net bought VND 1,938 billion during the session, mostly concentrated in SSI, SHB and VCB. On the other hand, FPT, GEX and DGC were the stocks that suffered the most net selling pressure.

▶ Technical perspective: There are many signals showing that VN-Index is in a positive uptrend, many candles are increasing with good amplitude and liquidity is improving in an upward direction. The uptrend with improved liquidity shows that there is support from institutional investors, specifically foreign investors maintaining a strong net buying momentum after Vietnam received the announcement of new tariff rates. RSI technical signals show that the market is in the overbought zone, the market is likely to have technical correction sessions and will open up buying opportunities for investors in the near future.

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.