Vietnam Insight

▶ The market adjusted in the trading session on Thursday when the selling momentum increased in the afternoon session, especially when many banking stocks turned to decrease, putting pressure on the index. At the end of the session, VN-Index could not maintain the green color and recorded a decrease of more than 12 points. Contributing significantly to the selling pressure was the foreign investor group when this group increased the net selling amplitude. On the other hand, liquidity remained at a low level, showing the cautious sentiment of the market before the official announcement of information about the upgrade.

▶ At the end of the trading session, VN-Index decreased by 12.34 points (-0.74%), reaching 1,652.71 points; HNX-Index decreased by 3.67 points (-1.34%), reaching 269.55 points. Liquidity of the whole market remained at a low level of VND 24.5 trillion, equivalent to 879 million shares traded. Foreign investors increased their net selling volume with a volume of VND 2,350 billion on the HOSE floor, in which the largest net selling value belonged to VHM, FPT and VPB. On the contrary, LPB, VJC, CTD... were the rare bright spots that this group net bought.

▶ Technical perspective: The market went on suffering net selling pressure from foreign investors  and was trading in a narrow range. Overall, the market is maintaining a sideways trend around 1,600 - 1,700 points, liquidity and price momentum are declining, awaiting official upgrade information on October 7. The 1,600 - 1,623 point area, which is corresponding to MA 50 is an important support level for the medium- and long-term uptrend of the overall market.

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 in the upward direction and large amplitude will strengthen the market's uptrend.

In the negative case: The market faces profit-taking pressure when the upgrade news is announced, the amplitude of the down 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 (this is also the old peak area in 2022). 

Strategy: Prioritize the holding strategy and being 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 stock groups with many driving forces such as benefiting from market upgrading, strong business growth results; or lower valuation levels compared to the general market.