Vietnam Insight

▶ The market opened the trading session with a slight gap up 0.67 points after the market's recovery at the end of the previous trading session. The selling pressure across the market in the morning session eased compared to the previous session even though foreign investors continued to net sell. Strong selling pressure gathered in the afternoon session when demand lacked spread. Thanks to the net selling pressure of foreign investors decreasing at the end of the afternoon session, the index closed above the reference level. 

▶ At the end of the trading session, the VN-Index increased slightly by 0.81 points (+0.05%), to 1,635.26 points; the HNX-Index decreased by 1.22 points (-0.44%), to 273.01 points. The liquidity of the entire market in the tug-of-war session of the index dropped sharply to below the 20-session average and the lowest in the last 2 months at 25.1 trillion VND, equivalent to about 893 million shares traded. Foreign investors returned to net selling slightly VND 14 billion in the session, focusing on selling the most stocks FPT, MSN and KDH. On the other hand, VIX, MWG and SHB were the stocks with the strongest net buying.

▶ Technical perspective: Market liquidity dropped sharply, VN-Index ended the session with a doji candlestick. The price movements during the session clearly showed the hesitation of both sides, the buyers were waiting for the official information about the upgrade in October, while many large-cap stocks such as banks had a large discount from the peak, making the sellers not ready to reduce their weight further. If there is no special information, VN-Index will likely continue to move in a narrow range of 1,600-1,700 points to wait for new upward momentum in October. VN-Index is currently trading above MA50 and RSI is at a neutral level, around 50.

In the positive case: Rumors about the market upgrade can help attract new cash flow and move towards 1,750-1,800 points. Cash flow increases on the upside, the amplitude increases and spreads throughout the market.

In the negative case: The market faces profit-taking pressure when the upgrade news is announced, the amplitude of the falling sessions is large and breaks the short-term support zone of 1,600 points. If this level is broken, the market is likely to retest the 1,500-1,550 point area, corresponding to MA 50. 

Strategy: Prioritize the strategy of holding and being ready to sell when reaching the target. 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 groups of stocks with many driving forces such as benefiting from upgrading, strong business results; or lower valuation levels compared to the general market.