Vietnam Insight

▶ The market had its second consecutive declining session in the first trading session of the week. Although it opened in green due to the positive influence of the world market since the end of last week, the VN-Index could not maintain its upward momentum. The banking group is now the biggest burden hindering the index with many representatives hitting the floor prices such as TPB, OCB, VPB... Liquidity dropped to below the average level. Foreign investors continued to net sell strongly and showed no signs of stopping.

▶ At the end of the trading session, the VN-Index decreased by 31.44 points (-1.91%), reaching 1,614.03 points; the HNX-Index decreased by 5.9 points (-2.17%), reaching 266.58 points. Market liquidity reached VND46 trillion, equivalent to 1.6 billion shares traded. Foreign investors net sold VND1,755 billion, of which the largest net selling value was in HPG, VPB and STB. On the contrary, MBB, SHB and SSI were the typical net-bought stocks.

▶ Technical perspective: VN-Index recorded a strong decline with red dominating the entire trading session. The market saw profit-taking pressure on hot stocks, however, low liquidity showed that there were no signs of large cash flows escaping. The medium-term uptrend is still being maintained as the index moves closely to the MA20 support lines. In the coming sessions, VN-Index may experience fluctuations to test the market's nearest support at 1,600 and further at 1,550. Investors need to manage risks when VN-Index moves in the opposite direction and breaks through the trend channel support at 1,510 points along with large liquidity.

In the positive case: The market is likely to experience corrections 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 are reversal signals.

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

Strategy: Prioritize the strategy of holding and being 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.