Vietnam Insight

▶ The index opened the first session of the week with a gap up 4.91 points after strong selling pressure in the previous session. However, selling pressure quickly overwhelmed and continuously weighed on the index, pushing it below the reference level and trading sideways throughout today's session. Although foreign net selling pressure eased, the index was still under overwhelming selling pressure and closed at the lowest level of the day. 

▶ At the end of the session, the VN-Index decreased by 22.65 points (-1.38%), to 1,617.00 points; the HNX-Index decreased by 6.67 points (-2.51%), to 259.18 points. Market liquidity increased due to strong selling pressure, higher than the 20-session average, reaching VND 33.1 trillion, equivalent to 1,178 million shares traded. Foreign investors' net selling was slightly reduced to VND 137 billion, in which the largest net selling value belonged to VIX, MBB and STB. On the contrary, FPT, ACB and VJC were the typical net buying stocks.

▶ Technical perspective: VN-Index continued to have a strong decline, closing at the lowest point of the session at 1,617 points, falling back to the psychological threshold of 1,600 points. Trading liquidity has not improved, showing that demand is still weak while selling pressure is overwhelming throughout the trading session. The short-term market continues to trade in the range of 1,600 - 1,700 with the possibility of unexpected fluctuations during the session before confirming a new trend for the next phase, the nearest support of the market is at 1,580.

In the positive 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 the 1,600 point mark continues to be broken, 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 upgrades, strong business growth results; or lower valuation levels compared to the general market.