Vietnam Insight

▶ The market's upward momentum was maintained in Tuesday's trading session, led by the financial group. Many banking and securities stocks achieved strong price increases, supporting the market's gain in points, typically named VPB, TPB, TCB, ACB. Liquidity showed improvement compared to yesterday. Foreign investors maintained their net selling pattern and have net sold nearly 25 trillion VND since the beginning of August.

▶ At the end of the trading session, the VN-Index increased by 17.83 points (+1.09%), reaching 1,654.20 points; HNX-Index increased by 2.58 points (+0.91%), reaching 286.45 points. Market liquidity reached 59.4 trillion VND, equivalent to 1.6 billion shares traded. Foreign investors net sold 1,504 billion VND, of which the largest net selling value was in MWG, KDH and HPG. On the contrary, SSI, DIG, BAF are typical net-bought stocks.

▶Technical perspective: VN-Index recorded a positive session with green color dominating the entire session. Improved liquidity compared to yesterday's session shows that buying power is dominant and investors are optimistic. The uptrend is still being maintained as the MA10 and MA20 lines are still sloping up. If VN-Index increases with a large spread accompanied with 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 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.