Vietnam Insight

▶ The market opened the new trading week with a session recording continued increase and even reached the 1,600 point in the morning. The group of financial stocks was the highlight of today's session with many representatives increasing strongly such as SHB, MBB or SSI, SHS. Liquidity remained at the 20-session average level. Foreign investors continued to net sell, although with a moderate value.

▶ At the end of the trading session, the VN-Index increased by 11.91 points (+0.75%), reaching 1,596.86 points; HNX-Index increased by 4 points (+1.47%), reaching 276.46 points. The liquidity of the whole market reached 51.04 trillion VND, which was equivalent to about 1.89 billion shares traded. Foreign investors net sold 621 billion VND, mainly concentrated in HPG, FPT and GEX. On the other hand, VPB, SHB and MSN were the stocks with the strongest net buying.

▶ Technical perspective: VN-Index recorded an increasing session with liquidity around the average level, showing that demand tends to be more cautious as the index approaches the 1,600 points. The market maintains a positive state when blue-chip stocks continuously rotate to maintain momentum for the index. Currently, VN-Index is still closely following the support line on the trend channel and maintaining an upward trend. If VN-Index increases with a large amplitude accompanied with increased transaction value, the index is expected to move towards the 1,600 - 1,700 point range. Investors need to manage risks when VN-Index moves in the opposite direction and breaks the support of the trend channel at 1,510 points with large liquidity.

- 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 1,510 - 1,550 points will be a good opportunity for investors to increase their stock 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 adjustment sessions around 1,510 - 1,550 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 1,450 - 1,510 point area, investors can reduce the proportion of stocks to manage risks.