Vietnam Insight

▶ The market opened the trading session with a gap of 5.05 points despite the strong selling pressure of the previous session. The index continued to be under strong selling pressure in the morning session under the net selling momentum of foreign investors. The selling pressure weakened in the afternoon session and the index recovered above the reference level. However, the liquidity of the market's recovery session was quite low and foreign investors returned to net selling during the session. 

▶ At the end of the trading session, the VN-Index increased by 12.79 points (+0.79%), reaching 1,637.32 points; HNX-Index increased by 3.25 points (+1.20%), reaching 274.82 points. The liquidity of the entire market in the recovery session decreased sharply below the 20-session average to VND 34.7 trillion, equivalent to about 1,288 million shares traded. Foreign investors returned to strong net selling of VND 878 billion during the session, focusing on selling the most stocks HPG, SSI and MBB. On the other hand, FPT, VPB and HDG were the stocks with the strongest net buying.

▶ Technical perspective: VN-Index had its first recovery session after two previous strong correction sessions. The market closed at the highest point of the session after the score had its lowest point at 1,615 points. Liquidity remains low, indicating that supply and demand are rebalancing, and this state will continue to repeat itself in the adjustment phases when it reaches the support channel of the trends. In the coming time, the market will move in small trends of increasing and decreasing intertwined with each other. In order to return to the large uptrend, the VN-Index needs to accumulate and tighten the amplitude. Investors need to manage risks in case the VN-Index breaks the MA50 mark at 1,540 points.

In the positive case: After the rounds of re-testing the 1,640 point area corresponding to MA 20, 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, there is a high possibility that the market will 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, they can 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 heavily, focusing on groups of stocks with many driving forces such as benefiting from upgrading, strong business results; or lower valuation levels compared to the general market.