Vietnam Insight

▶ The index opened the trading session with a gap down 4.52 points despite the previous recovery session. The index traded around the reference level in today's session despite a strong recovery with the support of volume in the previous session. After information about the Resolution on the state economy that will be issued soon, state-owned enterprises showed positivity today, in return, foreign investors returned to strong net selling after the session to support the index at the 1,600 mark. 

▶ At the end of the trading session, the VN-Index increased by 2.91 points (+0.18%), reaching 1,654.89 points; the HNX-Index increased by 0.79 points (+0.30%), reaching 266.70 points. Liquidity of the whole market decreased immediately after the index's recovery session, liquidity was lower than the average of 20 sessions, reaching VND 22.8 trillion, equivalent to 776 million shares traded. Foreign investors sold a net amount of VND 806 billion, with the largest net selling value belonging to TCB, VRE and GEX. On the contrary, MSN, DXG and FPT were the typical net buying stocks.

▶ Technical perspective: The index moved sideways within a narrow range, the market continued to trade slowly and there were not many changes. Lower liquidity compared to the 20-session average shows that demand is still hesitant when the market has not improved much in terms of trend and the market appears highly differentiated. In the short term, the 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 period.

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 area (this is also the old peak of the market in 2022).

Strategy: Short-term investors should temporarily not buy new stocks 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.