Vietnam Insight

▶ The market opened the first trading session of the week with a strong gap of 10.74 points, continuing the upward momentum of the previous trading week. The index continuously received strong demand from domestic investors throughout the trading session. Despite strong net selling pressure from foreign investors, the index continued to set a new peak. 

▶ At the end of the trading session, the VN-Index continued to increase by 26.29 points (+1.72%), reaching 1,557.42 points; the HNX-Index increased by 9.23 points (+3.63%), reaching 263.79 points. The liquidity of the whole market reached a 3-month high of VND 52.2 trillion, equivalent to only about 2.161 million shares traded. Foreign investors net sold VND 1,049 billion in the session, mostly concentrated in HPG, FPT and GVR. On the other hand, SHB, VNM and LPB were the stocks with the most net purchases.

▶ Technical perspective: After surpassing the peak, VN-Index attracted new cash flow, continuing to push the index to accelerate in the trading session on July 28. Institutional cash flow showed differentiation, foreign investors maintained net selling from the previous trading week until now. RSI is currently trading in the overbought zone, we believe that the increase can be maintained but there will be some shaky sessions.

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 1,600-1,700 points

In the positive case: The market is likely to experience a correction before continuing to increase points towards 1,600-1,700 points. Adjustments around 1,450-1,480 will be a good opportunity for investors to increase their positions

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

Strategy: During technical correction sessions, investors can consider partial disbursement in stocks with good business results and benefiting 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.