Vietnam Insight

▶ With the impressive performance of the Banking group, the market continued to increase significantly on Thursday and took one step closer to the 1,700 point mark. The index opened above the reference price and maintained an increase throughout the session and managed to close with a nearly 24-point gain. However, the spill-over effect was not good when almost other industry groups decreased, and liquidity decreased after yesterday's explosion. It is worth noting that foreign investors returned to strong net selling with a net selling value exceeding VND 2,400 billion.

▶ At the end of the trading session, the VN-Index increased by 23.64 points (+1.42%), reaching 1,688.00 points; the HNX-Index increased by 0.66 points (+0.23%), reaching 284.39 points. The liquidity of the whole market reached VND 56.5 trillion, equivalent to 1.6 billion shares traded. Foreign investors net sold VND2,422 billion, of which the largest net selling value was in VPB, HPG and CTG. On the contrary, SSI, BID and VHM were the typical net buying stocks.

▶Technical perspective: VN-Index recorded an increase mainly from large-cap stocks, typically banks, showing that the spread was not good. Liquidity remained relatively stable, the uptrend is still being maintained when the MA10 and MA20 lines are still sloping up. VNINDEX still has enough strength to move towards the 1,700 zone with a few pillars that have not increased too strongly such as VCB VNM BID. Investors need to manage risks when the market is completely capable of experiencing a 50-70 point drop at any time.

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.