Vietnam Insight

▶ The market's upward momentum continued to be extended thanks to the leadership of Vingroup stocks including VIC, VHM and VRE. At the same time, the return of foreign net buying has not shown any signs of slowing down with 7 consecutive net buying sessions worth more than VND 10,000 billion. The market has shown signs of differentiation between stock groups. 

▶ At the end of the trading session, the VN-Index increased by 14.32 points (+1.00%), reaching 1,445.64 points; the HNX-Index decreased slightly by 0.19 points (-0.08%), to 238.44 points. The liquidity of the whole market continued to be impressive at VND 30.4 trillion, equivalent to only about 1,302 million shares traded. Foreign investors net bought VND 1,076 billion during the session, mostly concentrated in SSI, VPB and SHB. On the other hand, HPG, CTG and HDG were the stocks that suffered the most net selling pressure.

▶ Technical perspective: The upward trend with improved liquidity shows the consensus of institutional investors, specifically foreign investors maintaining a strong net buying momentum after Vietnam received a positive tariff announcement for the Vietnamese market. 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 coming time when the market's discount breadth has increased significantly, accounting for 33.4% in the session when the market increased by more than 14 points.

In the positive case: During the correction sessions, buying power appeared around the 1,400 point area, helping to open up suitable buying points to increase positions. Information about good Q2/2025 business results and market upgrades could be key factors helping the market maintain its upward momentum in the coming time..

In the base case: Overwhelming selling pressure caused VN-Index to lose EMA20 and EMA50 points, along with negative economic information that could push VN-Index back to a sideways state within a wide range.

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.