Vietnam Insight

▶ The market opened the trading week after the holiday at the reference level and traded around the reference level under strong selling pressure in the morning session. Selling pressure decreased in the afternoon session and the index closed near the reference level. However, the net selling momentum of foreign investors remained and showed no signs of stopping. 

▶ At the end of the trading session, the VN-Index decreased slightly by 0.91 points (-0.05%), to 1,681.30 points; the HNX-Index increased by 2.72 points (+0.97%), reaching 282.70 points. The liquidity of the whole market decreased below the average of 20 sessions to VND 41.2 trillion, equivalent to about 1.492 million shares traded. Foreign investors continued to maintain strong net selling of VND 2.885 billion during the session, mostly concentrated in HPG, VPB and FPT. On the other hand, PDR, CII and NKG were the stocks that foreign investors bought the most.

▶ Technical perspective: VN-Index continued to trade in a narrow range with most of the time in red during the session. The price line formed 2 small peaks to retest the peak and absorb the selling supply here with low liquidity. In general, VN-Index still maintains a medium-term uptrend when the index moves closely following the MA20 support lines. The nearest support level is at 1,600 points and further at 1,500 points. Investors need to manage risks when VN-Index breaks through MA 20 and MA 50, respectively, at 1,600 and 1,500 points.

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

In the negative case: The market tends to move sideways and accumulate at the 1,600 point mark corresponding to MA 20. If this mark is broken, there is a high possibility that the market will return to 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, they can 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 heavily, focusing on groups of stocks with many driving forces such as benefiting from upgrades, strong business results; or lower valuation levels compared to the general market.