Vietnam Insight

▶ The market opened the trading session with a gap of 4.51 points, despite a strong increase at the end of the previous session. The index immediately faced strong selling pressure with continued net selling by foreign investors. Selling pressure weakened in the late morning session and the index recovered well in the afternoon session. Vingroup stocks and other pillar stocks such as LPB, VNM, MWG led the index in today's session. 

▶ At the end of the trading session, the VN-Index increased by 14.49 points (+0.88%), reaching 1,657.75 points; the HNX-Index decreased slightly by 0.42 points (-0.15%), to 274.18 points. The liquidity of the whole market in the strong recovery session continued to decrease below the 20-session average to VND 40.3 trillion, equivalent to about 1,457 million shares traded. Foreign investors continued their strong net selling trend and net sold VND 1,079 billion during the session, focusing on selling the most stocks SSI, MWG and MSB. On the other hand, VHM, TCB and GEX were the stocks with the strongest net buying.

▶ Technical perspective: The market fell sharply in the morning session and returned to retest the support level of 1,600 points. The afternoon session saw a candle with a shortened leg and increased points again, showing the presence of support demand. Liquidity remained low, which often appeared after each recent correction of the VN-Index. In the coming sessions, the market may return to the upper limit around 1670, however, to be able 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 through the MA50 mark at 1540 points.

In the positive case: After several 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.