Vietnam Insight

▶ The market continued the previous session's upward momentum with a increase gap of 3.38 points. The index traded around the reference level in the morning session before facing selling pressure in the late afternoon session. The market adjusted due to profit-taking pressure even though foreign investors continued to maintain strong net buying in today's session.

▶ At the end of the trading session, the VN-Index decreased by 9.77 points (-0.66%), to 1,460.65 points; the HNX-Index increased by 0.72 points (+0.33%), reaching 240.33 points. The liquidity of the entire market in the profit-taking session was high at VND 38.6 trillion, equivalent to only about 1.666 million shares traded. Foreign investors maintained net buying for 10 consecutive sessions and net bought VND 1.106 billion in today's session, focusing mostly on SSI, DXG and GEX. On the other hand, GMD, VCI and TCH were the stocks that suffered the most net selling pressure.

▶ Technical perspective: After 7 consecutive sessions of increase, VN-Index is under short-term profit-taking pressure as it approaches the old peak of 1,500 points. The characteristic of the recent increase is that foreign investors are net buyers while domestic investment funds and individuals are continuously selling. We expect this technical adjustment to be an opportunity for investors to increase their positions. The RSI is moving down to escape the overbought zone. VN-Index is currently trading above all 3 EMA20/50/200 lines, with the support of institutional cash flow behind, the main trend of the market, according to our assessment, is still an uptrend.

In the positive case: In the correction sessions, buying pressure appears around the 1,400-1,450 point area, helping to open up suitable buying points to increase positions. Information about good growth in Q2/2025 business results and market upgrade could be the key factors helping the market maintain its upward momentum in the coming time.

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

Strategy: In technical correction sessions, investors can consider partial disbursement in stocks with good business results expectations and benefit from market upgrade expectations. Investors can consider investing in stocks that have attracted foreign cash flows in recent times such as banks and real estate.