Vietnam Insight

▶ The market experienced strong fluctuations on Wednesday due to strong profit-taking pressure, causing the index to fall to 1,615 at times during the session, corresponding to a decrease of about 40 points compared to the reference price. Recovery efforts from some large-caps such as VPB, VIC, LPB,... helped the index regain momentum and close in the green color. However, the number of decreasing stocks still dominated the market. Liquidity increased sharply in the volatile session and foreign investors slowed down their net selling.

▶ At the end of the trading session, the VN-Index increased by 10.16 points (+0.61%), reaching 1,664.36 points; the HNX-Index decreased by 2.72 points (-0.95%), reaching 283.73 points. Total market liquidity reached VND 74.8 trillion, equivalent to 1.6 billion shares traded. Foreign investors net sold VND 436 billion, of which the largest net selling value was in VPB, FPT and CII. On the contrary, SHB, VIX and VSC were the typical net-bought stocks.

▶Technical perspective: VN-Index recorded a slight increase, forming a candle with a long leg. Liquidity showed signs of improvement, the uptrend is still being maintained when the MA10 and MA20 lines are still sloping up. If VN-Index has an increasing consensus from the market, the index is expected to move towards the 1,700 zone. Investors need to manage risks when VN-Index breaks through the MA 20 support which is the 1,570 point zone. 

In the positive case: The market is likely to experience a correction before continuing to increase points towards 1,700 points. Adjustments around 1,550-1,570 will be a good opportunity for investors to increase their positions if there is a reversal signal

In the negative case: The overwhelming selling pressure causes VN-Index to lose the MA 20 and MA 50, along with unfavorable economic information that can cause the market to lose its medium-term uptrend.

Strategy: Prioritize the holding strategy and be ready to sell when the target is reached. If the market corrects to around 1,500-1,570 points, investors can consider disbursing part of the investment in stocks with good business results and benefiting from the expectation of market upgrade. In case the institutional cash flow does not reappear in the 1,500-1,570 point area, investors can reduce the proportion of stocks to manage risks. We still expect that the industrial and retail real estate groups still have good buying opportunities when prices have not increased too much compared to the general market, and expect the correction to open up buying opportunities for the Securities group.