Vietnam Insight

▶ The market's upward momentum has not shown any signs of cooling down. The index continued to open the trading session with a gap of 7.94 points with demand evenly distributed across all industry groups. Although foreign net buying has shown signs of slowing down, thanks to strong market demand, the VN-Index continued to hold above the 1,500 mark.

▶ At the end of the trading session, the VN-Index continued to increase by 8.71 points (+0.58%), reaching 1,521.02 points; the HNX-Index increased by 1.34 points (+0.54%), reaching 250.67 points. Market liquidity remained impressive at VND40.2 trillion, equivalent to only about 1,680 million shares traded. Foreign investors net sold VND 208 billion during the session, mostly concentrated in HPG, MSN and VHM. On the other hand, HDB, SSI and VNM were the stocks with the most net purchases.

▶ Technical perspective: VN-Index fluctuated during the session, the index returned to the 1,500 point zone before recovering in the afternoon session. The banking group attracted cash flow to support the recovery of VN-Index. However, market liquidity is still high while the growth momentum has slowed down in recent sessions, showing the lack of readiness of new cash flow and short-term profit-taking pressure appearing around the old peak.

In terms of trend, 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, in our opinion, is still an uptrend. However, VN-Index needs an attractive enough correction session to attract new cash flow, bringing the index towards 1,600 points

In the positive case: The market is likely to experience a correction before continuing to increase points towards 1,600 points. Adjustments around 1,450-1,480 will be a good opportunity for investors to increase their positions

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

Strategy: In technical adjustment sessions, investors can consider disbursing part of the investment in stocks with good business results and benefiting from expectations of market upgrade. Investors can consider investing in stocks that have attracted foreign cash flow in recent times such as banks and real estate.