Vietnam Insight

▶ The market continued to adjust in Wednesday trading session, but the adjustment pressure was moderate. The index maintained an increase for most of the morning session, but could not maintain the green color due to strong selling pressure that emerged strongly in the afternoon, leading to the Vn-Index closing down slightly by 3 points. Liquidity decreased compared to yesterday's session, although the transaction value was still relatively high, above the 20-session average. Foreign investors narrowed their net selling momentum, with net buying volume in banking stocks such as TPB, SHB, VCB somewhat offsetting the strong net selling volume in FPT and KDH.

▶ At the end of the trading session, the VN-Index recorded a decrease of 3.11 points (-0.18%), closing at 1,757.95 points; HNX-Index increased by 0.79 points (+0.29%), reaching 276.12 points. Total market liquidity reached VND41.1 trillion, equivalent to 1.3 billion shares traded. Foreign investors continued to net sell VND 832 billion during the session, with the largest net selling value concentrated in FPT, KDH and HDB stocks.

▶ Technical perspective: The market continued to fluctuate around the high of 1,760 points but with great variation. The majority of stocks are still accumulating and the leading sector has not showed itself yet. Trading liquidity remained at the average level of 20 sessions, showing that cash flow is still in the market despite profit-taking pressure. The market is currently accumulating around the 1,750 - 1,770 range but still maintains an uptrend. However, the index may retest the important resistance level of 1,700 before reaching new highs.

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 decline 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 refrain from increasing positions after the break-out. In the positive case, VN-Index successfully tests and maintains 1,700, investors can increase the proportion for the upcoming uptrend in the retesting sessions. In the case that the market returns to the 1,600 point zone, there will be a clearer buying opportunity, investors can disburse for stocks with many driving forces such as benefiting from the upgrade, strong business growth results; or lower valuation.