Vietnam Insight

▶ The market experienced a volatile trading session today. Accordingly, VN-Index reached 1,584 points during the session but was under strong selling pressure and ended up closing with an increase of nearly 19 points. Liquidity skyrocketed and foreign investors continued to net sell, mainly focusing on VIC.

▶ At the end of the trading session, VN-Index increased by 18.92 points (+1.24%), reaching 1,547.15 points; HNX-Index decreased by 2.22 points (-0.83%), reaching 266.12 points. Market liquidity skyrocketed to VND 85 trillion, showing a sharp increase in selling pressure. Foreign investors net sold VND 2,339 billion, of which the agreed selling value of VIC accounted for about VND 2,600 billion. On the other hand, HPG, BID or MSN were typical representatives of net-bought stocks. 

▶ Technical perspective: The market fluctuated strongly in today's trading session, at times falling more than 60 points compared to the highest point of the session. The index in today's trading session was strongly supported by Vingroup and banking stocks. Although the index closed higher than the previous session, the market is under strong profit-taking pressure and may make unexpected adjustments in the upcoming sessions. At the same time, foreign cash flow also continued to maintain net selling position. The next developments will determine whether the index will form a double-peak pattern or just a normal correction session. If the VN-Index increases in points with the consensus of liquidity and closes above the 1,560 mark, the index is expected to move towards the 1,600-1,700 range. If cash flow is not supportive (liquidity remains low) and the market shows selling pressure around the old peak, the VN-Index is expected to adjust to around 1,450 points for re-testing.

- In the positive case: The market is likely to experience corrections before continuing to increase points towards 1,600 - 1,700 points. Adjustments around 1,400 - 1,450 points will be a good opportunity for investors to increase their stock proportions.

- In the negative case: The overwhelming selling pressure could cause 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: Investors should limit disbursement in recovery sessions which is accompanied with low liquidity and wait for a clearer confirmation of the uptrend. In technical correction sessions around 1,400 - 1,450 points, investors can consider partial disbursement in stocks with good business results and benefit 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.