Vietnam Insight

▶ The market opened with a gap up 3.62 points after the previous day's recovery session. The pressure of foreign net selling pushed the index to fluctuate around the reference level throughout the morning session. Although foreign investors continued to net sell strongly in the afternoon session, the overwhelming buying power of domestic investors helped the index recover impressively. Vingroup shares contributed greatly to the index's recovery session, the index regained the MA 20 mark.

▶ At the end of the trading session, the VN-Index increased by 8.63 points (+0.52%), reaching 1,666.09 points; the HNX-Index increased by 0.37 points (+0.13%), reaching 277.65 points. The liquidity of the whole market remained relatively low, below the 20-session average at VND 30.3 trillion, equivalent to 1,128 million shares traded. Foreign investors continued to net sell strongly VND 2,064 billion, in which the largest net selling value was in VPB, FPT and SSI stocks. On the contrary, VIC, TCB and TAL were the typical net buying stocks.

▶ Technical perspective: VN-Index maintained low liquidity in the slight increase session, the market was supported by VIC stocks when contributing nearly 8 points of increase. Apart from the increase in the real estate and public investment groups, the remaining sectors have almost no significant fluctuations. In general, the market continues to be in a sideways state waiting for information and fluctuates around 1,600-1,700 points. VN-Index is currently trading above MA50 and RSI is at a neutral level, around 50.

In the positive case: Rumors about market upgrade can help attract new cash flow and move towards 1,750-1,800 points. Cash flow increases on the upside, amplitude increases and spreads across 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 zone of 1,500-1,550 points, corresponding to MA50.

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 groups of stocks with many driving forces such as benefiting from upgrading, strong business growth results; or lower valuation levels compared to the general market.