Vietnam Insight

▶ The market opened with a slight decrease gap of 0.90 points after the previous day's adjustment session. The index was under selling pressure in the early morning session due to concerns about the proposed securities tax but immediately returned to the uptrend. The uptrend spread well across many industry groups. 

▶ At the end of the trading session, the VN-Index increased by 24.49 points (+1.65%), to 1,509.54 points; the HNX-Index increased by 2.06 points (+0.84%), reaching 247.85 points. Although remaining above the 20-session average, the liquidity of the whole market decreased compared to previous sessions, reaching VND 37.5 trillion, equivalent to only about 1.517 million shares traded. Foreign investors net sold VND 1.751 billion in today's session, mostly concentrated in VJC, SSI and SHB. On the other hand, HPG, TPB and VCB were the stocks that foreign investors bought the most.

▶ Technical perspective: VN-Index opened with a slight correction to around 1,480 points, equivalent to EMA9. However, with the main trend being up, the cash flow waiting outside quickly entered to catch the bottom. VN-Index immediately reversed the decline and increased sharply by nearly 25 points at the end of the session. VN-Index is still 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: After strong buying pressure appeared around 1,480 points, VN-Index sent a positive signal to the market. The market is likely to continue to increase points towards 1,600 points.

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 disbursing part of the investment in stocks with good business results expectations and benefiting from market upgrade expectations. Investors can consider investing in stocks that have attracted foreign cash flows recently, such as banking and real estate.