Vietnam Insight

▶ In continuation of the excitement after being officially upgraded, the market continued to break the important resistance zone of 1,700 with great support from Vin Group stocks (this group alone contributed nearly 10 points to the index's gain). The market opened in green and remained above the reference level throughout the entire trading period. Liquidity remained unchanged compared to the previous session, and foreign investors returned to net-selling position after a transient net-buying session of yesterday.

▶ At the end of the trading session, the VN-Index recorded an increase of 18.64 points (+1.1%), reaching 1,716.47 points; the HNX-Index increased by 1.6 points (+0.59%), reaching 274.94 points. Liquidity of the whole market remained flat at 36.7 trillion VND, equivalent to 1.2 billion shares traded. Foreign investors returned to net selling VND 1,604 billion, the largest net selling value concentrated in stocks such as HPG, SSI and VRE despite positive business results forecast... On the contrary, VIC, TCB and BSR were typical net-bought stocks.

▶ Technical perspective: The market's upward momentum continued to be maintained after Vietnam was officially upgraded from FTSE Russell, the VNINDEX officially surpassed the important resistance level of 1,700 with improved liquidity. Opening with a gap up and maintaining good buying power from domestic investors, although the VNINDEX was under strong net selling pressure from foreign investors, the index convincingly surpassed the strong resistance level of 1,700. The index has officially escaped the sideway zone of 1,600 - 1,700 points and is expected to conquer new highs. However, the index may retest the important resistance level of 1,700 before reaching new highs.

In the positive case: The market upgrade information can help support sentiment and attract new cash flow and help index move towards 1,750 - 1,800 points. Increased liquidity in the same direction as the index will reinforce the uptrend of the market.

In the negative case: The market faces profit-taking pressure after 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 zone (this is also the old peak of the market in 2022).

Strategy: Prioritize the holding strategy and be ready to sell when the target is reached. In the positive case, VN-Index successfully tests and maintains 1,700, investors can increase the proportion for the upcoming uptrend. In case of not successfully breaking through 1,700, the market returns to the 1,500-1,540 point range, 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.