Vietnam Insight

▶ The recovery maintained in Wednesday's trading session with a 15-point increase, bringing the VN-Index back to 1,678. The index opened with a Gap-up, but strong selling pressure in the afternoon caused many stocks to reverse and decline, at times the general market lost 35 points during the session. However, bottom-fishing cash flow helped the market recover and close with a relatively good increase. Liquidity dropped sharply below the 20-session average - showing investors' caution and foreign investors returned to net selling after yesterday's strong net buying activity. 

▶ At the end of the trading session, the VN-Index recorded an increase of 15.07 points (+0.91%), closing at 1,678.50 points; the HNX-Index increased 4.04 points (+1.53%), reaching 266.69 points. Market liquidity fell sharply below the 20-session average, reaching VND35.5 trillion, equivalent to 1.1 billion shares traded. Foreign investors net sold VND1,633 billion, of which the largest net selling value was concentrated in CTG, HPG and VCI.

▶ VPL (+6.61%), VHM (+1.89%), GAS (+5.36%) were the three stocks that contributed the most to supporting the index. On the other hand, TCX (-1.84%), SHB (-2.06%), VIC (-0.20%) were the three stocks that took away the most points from the market.

▶ Transportation, Food & Beverage and Materials were the industry groups that contributed the most to the index's increase in today's session. Typical representatives were ACV, MCH and DGC.

▶ Technical perspective: The market recorded a volatile trading session when retesting the support level of 1,670 points and managed to close at the highest level of 1,678 points after the correction pressure at some point caused the index to lose nearly 30 points. Trading liquidity dropped significantly to lower than the 20-session average, showing that the cash flow was still hesitant to observe when retesting the support level. However, to be able to return to the uptrend, VN-Index will have to re-accumulate to wait for the resurgence of leading stocks in the upcoming period. If the market maintains a good liquidity level and surpasses the 1670-1680 zone, the medium-term recovery trend can be confirmed.

In the base case: The market continues to trade in the 1,600 - 1,700 point zone. Liquidity increases in the same direction as the index, the large amplitude and the spreading green color will strengthen the opportunity for the market to return to the uptrend.

In the negative case: If the 1,600 point mark continues to be broken, the market is likely to retest the 1,500 - 1,550 point area (this is also the old peak of the market in 2022).

Strategy: Short-term investors should temporarily not buy and instead wait for the market to form a price base. In case the market successfully returns to test 1,600 points, investors can disburse for medium and long-term positions, focusing on groups of stocks with many driving forces such as benefiting from upgrading, strong business growth results; or lower valuation levels.