Vietnam Insight

▶ VN-Index continued its trading week with another session struggling below the 1,700 threshold. Although it opened in the green, the index was unable to maintain that upward momentum for the entire trading period. Strong selling pressure in the afternoon caused many stocks to turn down and the market closed down 16 points. VIC led the decline with a contribution of nearly 7 points. Liquidity continued to find a new bottom and there was no sign of cash flow return.

▶At the end of the trading session, the VN-Index recorded a decrease of 16.26 points (-0.96%), closing at 1,669.57 points; the HNX-Index decreased by 1.08 points (-0.4%), reaching 266.96 points. The liquidity of the whole market remained flat at a low level, reaching 26 trillion VND, equivalent to just over 919 million shares traded. Foreign investors continued to net sell with a net value of 1,177 billion VND, in which the largest net selling value was concentrated in VIX, GEX and MBB.

▶ Technical perspective: VN-Index quickly faced strong selling pressure when approaching the major resistance level of 1,700 points. Trading liquidity continued to decline, showing the cautious sentiment of investors when reaching the important resistance level. Selling pressure occurred throughout the trading session. In the short term, the market continued to trade in the range of 1,600 - 1,700 with the possibility of unexpected fluctuations during the session before confirming the new trend for the next period.

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.