Vietnam Insight

▶ The market continued to record an increasing session on Wednesday, successfully bringing the VN-Index to 1,640 points with support from the banking group. Liquidity was maintained quite well above the 20-session average. The less-than-consensus point was that foreign investors increased their net selling, with the total net selling value increasing sharply to over 2,300 billion.

▶ At the end of the trading session, the VN-Index increased by 29.09 points (+1.81%), reaching 1,640.69 points; HNX-Index increased by 5.46 points (+1.95%), reaching 285.15 points. Liquidity of the whole market remained quite good at 58.66 trillion VND. Foreign investors net sold 2,366 billion VND, of which the largest net selling value was in HPG, FPT and SSI. On the contrary, VJC, VPB and VIX were typical net-bought stocks.

▶ Technical perspective: VN-Index recorded a strong increase and remained green throughout the trading session. Higher-than-average liquidity showed that demand was still overwhelming and maintained positive sentiment despite the presence of net selling pressure from foreign investors. The upward sloping MA10 and MA20 lines showed that the uptrend was still maintained. If VN-Index increases the spread with the consensus of increasing transaction value, the index is expected to move towards the 1,700 zone. Investors need to manage risks when VN-Index moves in the opposite direction and breaks 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.