Vietnam Insight

▶ VN-Index created a long-legged candle during the trading session on Tuesday. The index maintained a decrease for most of the session, and began to recover strongly after 2 p.m when many large-cap stocks reversed and increased sharply, helping VN30 close the session up nearly 50 points. Liquidity has not shown signs of recovery, proving the reticence of bottom-fishing cash flow. In particular, foreign investors returned to net buying in today's session, contributing to supporting the index to regain the 1,680 mark.

▶ At the end of the trading session, the VN-Index recorded an increase of 27.96 points (+1.69%), closing at 1,680.50 points; the HNX-Index increased by 1.42 points (+0.54%), reaching 266.78 points. Liquidity of the whole market remained flat at a low level, reaching 32 trillion VND, equivalent to just over 1 billion shares traded. Foreign investors reversed to net buy VND 1,521 billion, in which the largest net buying value was concentrated in FPT, VRE, VPB.

▶ Technical perspective: VN-Index continued to be a volatile session when it fell up to 30 points at times due to strong supply pressure, however, the demand absorbed all of it, helping the market increase by 30 points, closing the session at the MA50 level. The recovery momentum spread among all sectors, and foreign net buying was also a bright spot in today's session. The market is still trading in the 1,600 - 1,700 range in the short term, with strong fluctuations. In the coming time, VN-Index needs to accumulate in the balance zone around 1670 - 1680 with good liquidity to confirm the market bottoming.

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

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

Strategy: Short-term investors should temporarily not buy new and 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 compared to the general market.