Vietnam Insight

▶ VN-Index recorded its first decline after surpassing the 1,700 peak, with liquidity soaring to the highest level of the month. With the active support from VIN stocks such as VIC, VHM and VRE, the index increased sharply in the morning session and at one point reached 1,794 (equivalent to an increase of nearly 30 points). However, the increase was not sustained, as selling pressure in the afternoon session caused many stocks to retreat, leaving the market close below the reference level. Foreign investors still maintained strong net selling with a net value of more than VND 1,400 billion.

▶ At the end of the trading session, the VN-Index recorded a decrease of 4.06 points (-0.23%), closing at 1,761.06 points; HNX-Index decreased 0.02 points (-0.01%), reaching 275.33 points. Market liquidity soared to VND 56.6 trillion under strong selling pressure, equivalent to 1.7 billion shares traded. Foreign investors continued to net sell VND 1,409 billion, in which the largest net selling value concentrated in FPT, SSI and VRE stocks. On the other hand, VHM, VIC and VCB were the typical net-bought stocks.

▶ Technical perspective: The market increased strongly in the morning session, helping the index approach the 1,800-point threshold, but after that pillar stocks cooled down, causing the index to reverse and decrease. Trading liquidity increased by more than 60% compared to the average of the last 20 sessions, showing that profit-taking pressure was in strongly presence. The market fluctuated at the high point areas but the  uptrend is still maintained. However, the index may retest the important resistance level of 1,700 before reaching new high points.

In the positive case: The index moves 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:  In the positive case when VN-Index successfully tests and maintains 1,700, investors can increase the stock proportion for the upcoming uptrend. In case the index fails to test the 1,700 mark, the market returns to the 1,500-1,550 point range, there will be a clearer buying opportunity for the medium-term position. In this case, investors can disburse more, 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.