Vietnam Insight

▶ The market successfully maintained its upward momentum in Wednesday's session with support from several large stocks such as VCB, FPT, SSI... During the session, the index re-tested the old peak of 1,688 set on August 21 but failed to close above that mark. The number of increasing and decreasing stocks was relatively balanced. Liquidity remained quite modest at below average level, and foreign investors increased net selling with a sudden value of more than VND 4,000 billion.

▶ At the end of the trading session, the VN-Index increased by 5.15 points (+0.31%), reaching 1,672.78 points; the HNX-Index increased by 0.59 points (+0.21%), reaching 276.38 points. Market liquidity reached VND 51 trillion, equivalent to 1.6 billion shares traded. Foreign investors increased their net selling value to VND 4,067 billion, with the largest net selling value in HPG, VPB and CTG. On the contrary, FPT, GMD and DXG were the typical net buying stocks.

▶ Technical perspective: VN-Index traded in a narrow range with a few pillar stocks sustaining the index since the morning session (VCB FPT and BID). Overall, VN-Index still maintains a medium-term uptrend when the index moves closely to the MA20 support lines. Investors need to manage risks when VN-Index moves in the opposite direction and breaks the trend channel support at 1,600, corresponding to MA 20.

In the positive case: The market is likely to experience a correction before continuing to increase points towards 1,700 points. Adjustments around 1,500 - 1,550 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 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 - 1,550 points, investors can consider disbursing part of their investment in stocks with good business results and benefiting from the expectation of market upgrade. In case institutional cash flow does not reappear in the 1,500 - 1,550 point area, investors can reduce the proportion of stocks to manage risks.