Vietnam Insight

▶ The market opened the trading session with a gap of 5.18 points, continuing the increase of the previous trading session. The index immediately faced strong profit-taking pressure in almost all sectors after information about real estate and securities taxes for individual investors being proposed for revision caused negative impacts. At the same time, profit-taking pressure became even greater when foreign investors continued to maintain net selling momentum. 

▶ At the end of the trading session, the VN-Index adjusted sharply by 64.01 points (-4.11%), to 1,493.41 points; the HNX-Index increased by 8.43 points (-3.20%), to 255.36 points. Liquidity of the entire market in the strong profit-taking session reached a record high of VND 80.2 trillion, equivalent to only about 3.254 million shares traded. Foreign investors net sold VND 964 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 buying.

▶ Technical perspective: Lacking the leadership of institutional cash flow after surpassing the peak, VN-Index faced strong profit-taking pressure and fell more than 64 points in the trading session. The RSI index fell out of the overbought zone. VN-Index was sold off heavily and broke through MA9, indicating that the market is entering a short-term correction phase. The index may experience recovery sessions in the coming sessions before facing selling pressure. Investors should consider reducing their exposure and not buying new positions after a deep decline. Regarding the long-term trend, we believe that VN-Index is still maintaining an uptrend when it is above MA20/MA50/MA200. This 5-10% correction phase is necessary for VN-Index to reach 1,600-1,700 points. In the positive scenario: 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: 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 around 1,400-1,450 points, investors can consider disbursing part of the stock in stocks with good business results and benefiting from market upgrade expectations. In case institutional cash flow does not reappear in the 1,400-1,450 point area, investors can reduce the proportion of stocks to manage risks.