Vietnam Insight

▶ The index opened the trading session with a gap up of 1.02 points after strong selling pressure in the previous session. However, the selling pressure of the previous session eased as the market approached the 1,600 mark and buying pressure reappeared with strong net buying pressure from foreign investors. The market's recovery session spread across many industry groups, of which the Securities and Real Estate sectors had the clearest recovery. 

▶ At the end of the trading session, the VN-Index increased by 34.98 points (+2.16%), reaching 1,651.98 points; the HNX-Index increased by 6.73 points (+2.60%), reaching 265.91 points. Liquidity in the whole market increased thanks to strong buying pressure when the index returned to the strong support level of 1,600, liquidity reached a level higher than the average of 20 sessions, reaching VND 37.6 trillion, equivalent to 1,366 million shares traded. Foreign investors bought a strong net of VND 1,223 billion, of which the largest net buying value belonged to VIX, VPB and MSN. On the contrary, HDB, STB and VHM were typical net sellers.

▶ Technical perspective: VN-Index continued a session of strong fluctuations when it sometimes fell back to the 1,600 point threshold, and with the support of the pillar group, the market recovered strongly, closing the session near the highest level at 1,652 points. Liquidity improved compared to the 20-session average, showing that demand began to absorb supply and the positive point was that foreign investors returned to net buying. 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 a new trend for the next period.

In the positive case: The market continued to trade in the range of 1,600 - 1,700 points. Liquidity increased 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 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.