Vietnam Insight

▶ The market opened the new trading week with a gap of 6.06 points after being under strong selling pressure at the end of last week. The index continued to be under strong selling pressure in the morning session despite the return of net buying by foreign investors. The strong net buying force of foreign investors in the afternoon session was not enough to prevent the market's decline from spreading to all industry groups, the index lost short-term support MA20 in the late afternoon session. 

▶ At the end of the trading session, the VN-Index fell sharply by 42.44 points (-2.55%), to 1,624.53 points; the HNX-Index fell sharply by 9.10 points (-3.24%), reaching 271.57 points. The liquidity of the entire market in the session fell sharply, exceeding the average of 20 sessions, reaching VND 58.2 trillion, equivalent to about 2.155 million shares traded. Foreign investors returned to net buying strongly VND 966 billion during the session, focusing on buying the most stocks HPG, SSI and CTG. On the contrary, GEX, VIX and NVL were the stocks with the strongest net selling.

▶ Technical perspective: VN-Index continues to adjust by a large margin and violates the MA20 trend line, which shows that the short-term uptrend is slowing down and the market is likely to enter a sideways phase with a large margin. In the sideways phase, the market will move in small up and down trends intertwined with each other. In order to return to a large uptrend, VN-Index needs to accumulate and tighten the margin. Investors need to manage risks in case VN-Index breaks through the MA50 mark at 1,540 points.

In the positive case: After testing the 1,640 point area corresponding to MA20, the market continues to increase towards 1,750 points.

In the negative case: The market tends to move sideways and accumulate at the 1,640 point mark corresponding to MA 20. If this mark is broken, the market will likely test the 1,540 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 1,540 point area, there will be a clearer buying opportunity for medium-term positions. Investors can disburse more strongly, focusing on stocks with many driving forces such as benefiting from upgrading, strong business results; or lower valuation levels compared to the general market.