Vietnam Insight

▶ Continuing the trading week, VN-Index recorded a session of increase after two consecutive days of decrease. The index fluctuated within a narrow range throughout the trading period, with the support of some bluechip stocks such as MSN, PNJ, VJC helping to support the score. Liquidity remained flat around the 20-session average. Notably, foreign investors reversed to net buy after a series of persistent net selling days, mainly in real estate stocks.

▶ At the end of the trading session, VN-Index recorded an increase of 8.9 points (+0.51%), closing at 1,766.85 points; HNX-Index increased by 0.96 points (+0.35%), reaching 277.08 points. Liquidity of the whole market remained flat at 43.57 trillion VND, equivalent to 1.3 billion shares traded. Foreign investors reversed to net buy VND544 billion in the session, the largest net buying value concentrated in stocks NLG, DXG and GEX.

▶ Technical perspective: The market moved sideways in a narrow range at the high of 1,760 points but there was strong differentiation. Liquidity increased compared to the average of the last 3 sessions, showing that active demand appeared as cash flow rotated between industry groups. The market is currently accumulating around the 1,750 - 1,770 point range but still maintains an upward trend. 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.