Vietnam Insight

▶ The upward momentum has not stopped yet as the VN-Index continued to conquer a new peak, remaining stable above 1,600 despite a sharp drop of about 20 points during the session. Liquidity improved compared to yesterday, showing the participation of cash flow when stock prices adjusted. Foreigners increased their net selling, mainly selling heavily in FPT shares.

▶ At the end of the trading session, the VN-Index increased by 3.38 points (+0.21%), reaching 1,611.60 points; the HNX-Index increased by 3.22 points (+1.16%), reaching 279.69 points. Liquidity of the whole market improved, increasing to 62.71 trillion VND. Foreign investors net sold 1,495 billion VND, of which the largest net selling value was in FPT with over 1,000 billion VND. In addition, typical net-sold tickers also included SSI, MWG and HPG. On the contrary, VPB, STB and POW were the stocks with the strongest net buying value.

▶ Technical perspective: VN-Index recorded a session of fluctuations around the 1,600 point threshold, ending the session with a slight increase in points. Higher-than-average liquidity showed profit-taking pressure, but demand was also very strong and ready to buy. The index sticks to the support line on the trend channel and maintains an uptrend with cash flow rotation between industry groups. If the VN-Index increases with a large spread and the consensus of increased transaction value, the index is expected to move towards the 1,600 - 1,700 point range. Investors need to manage risks when the VN-Index moves in the opposite direction and breaks through the trend channel support 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.