Vietnam Insight

▶ The market experienced a good supply - testing session on Thursday when it successfully retested the 1,659 zone, and managed to close with an increase of 8 points. The bright spot belonged to a few financial stocks such as VPB, TCB or SSI, while VIC restrained the market's growth. The market breadth was tilted towards gainers with 177 green stocks and 137 red stocks. Liquidity continued to decline and foreign investors have not yet reduced their net selling pressure.

▶ At the end of the session, the VN-Index increased by 8.08 points (+0.48%), reaching 1,680.86 points; the HNX-Index increased by 0.25 points (+0.09%), reaching 276.63 points. The liquidity of the whole market decreased to 37.6 trillion VND, equivalent to 1.3 billion shares traded. Foreign investors sold a net amount of VND2,566 billion, with the largest net selling value belonging to HPG, MSB and MBB. On the contrary, GMD, GEX and VND were the typical net buying stocks.

▶ Technical perspective: VN-Index continued to trade in a narrow range with the highlight belonging to the Financial Services sector. Overall, VN-Index still maintains a medium-term uptrend as the index moved closely to the MA20 support lines. Investors need to manage risks when VN-Index moves in the opposite direction and breaks through the trend channel support at 1,600 - corresponding to MA 20. In addition, recent foreign selling pressure as well as upcoming long holidays can also have a negative short-term impact on the market. 

In the positive case: After re-testing the 1,600 point area corresponding to MA 20, the market continues to increase towards 1,700 points.

In the base case: The market tends to move sideways and accumulate at the 1,600 point mark corresponding to MA 20. If this mark is broken, the market will likely test the 1,500 mark at MA 50. 

Strategy: Prioritize the holding strategy and be ready to sell when the target is reached. For short-term traders, if the market corrects to around 1,600 points and rebounds, it is possible to consider disbursing a low proportion. If the market returns to the 1,500 point area, there will be a clearer buying opportunity for medium-term positions. Investors can disburse more strongly, focusing on groups of stocks with many driving forces such as benefiting from upgrading, strong business results; or lower valuation compared to the general market.