Vietnam Insight

▶ The market opened the trading session with a gap of 8.85 points despite strong profit-taking pressure in the previous session. The index fluctuated around the reference level throughout today's session. Although profit-taking pressure was still present, strong buying demand overwhelmed profit-taking pressure and the consensus of foreign investors helped the index close above the reference level. 

▶ At the end of the trading session, the VN-Index increased by 14.22 points (+0.95%), reaching 1,507.63 points; the HNX-Index increased by 6.15 points (+2.41%), reaching 261.51 points. The liquidity of the whole market remained high above the 20-session average of VND 46.8 trillion, equivalent to about 1,942 million shares traded. Foreign investors returned to net buying VND 1,498 billion during the session, focusing mostly on SHB, VIX and VNM. On the other hand, SSI, VIX and VNM were the stocks that foreign investors sold the most.

▶ Technical perspective: The market had its first recovery session after a strong correction with liquidity remaining high. VN-Index regained the 1,500 point mark and closed above the EMA10, showing that the short-term uptrend is still maintained. VN-Index is likely to experience fluctuations in the coming sessions when the record volume of yesterday's trading session returns, the nearest support level of the market is around 1470. During this period, investors should consider reducing the proportion of stocks showing signs of weakness and not buying new stocks the day after a deep decline. At the same time, maintain reasonable cash to be flexible with possible scenarios.

In the positive case: The market is likely to experience corrections before continuing to increase points towards 1,600-1,700 points. Adjustments to around 1,400-1,450 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 bring VN-Index back to a sideways state within a wide range.

Strategy: In technical correction sessions around 1,400-1,450 points, investors can consider partial disbursement 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.