Vietnam Insight

▶ The market continued to increase on Wednesday with a new peak of 1,573 points, closing at the highest price of the session. Accordingly, the green color covered quite widely, although there was a lack of spread of cash flow as liquidity decreased. Despite the strong selling transaction at FPT, in general, foreign investors were still net buyers, which was a positive signal for the market. 

▶ At the end of the trading session, the VN-Index increased by 26.56 points (+1.72%), reaching 1,547.15 points; HNX-Index increased by 2.52 points (+0.95%), reaching 268.66 points. The liquidity of the whole market only reached 42 trillion VND, showing the hesitation of buyers at high prices. Foreign investors net bought 528 billion VND, in which the stocks with the most net purchase value were STB, MWG and VIX. On the other hand, FPT, KDH and VCI were net-sold heavily, with FPT's net selling alone accounting for 775 billion.

▶ Technical perspective: After a volatile session, VN-Index returned to increase and closed above the old peak. However, liquidity was low in the context of the index moving around the important resistance zone. On Thursday, the amount of shares which were traded strongly in the first session of the week will become sellable and will be a test for the market in the afternoon session. If the VN-Index increases with a large amplitude accompanied with the consensus of increased transaction value, it is expected to move towards the 1,600 - 1,700 range. If the cash flow is not supportive (liquidity remains low or liquidity is high but cannot break out to accelerate) and the market shows strong 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.