Vietnam Insight

▶ The index opened the session with a slight gap up 1.78 points after the previous recovery session. Selling pressure quickly weighed on the index with strong net selling pressure from foreign investors. The index recovered to the reference level in the afternoon session, but the index failed to maintain the reference level at the end of the session.

▶ At the end of the session, the VN-Index decreased by 12.25 points (-0.74%), reaching 1,642.64 points; the HNX-Index decreased by 0.55 points (-0.21%), reaching 266.15 points. Liquidity in the whole market continued to decline sharply, lower than the average of 20 sessions, at VND 20.3 trillion, equivalent to 690 million shares traded. Foreign investors strongly net sold VND 1,067 billion, of which the largest net selling value belongs to STB, VPB and HPG. On the contrary, MWG, VIC and VPI were the typical net buying stocks.

▶ Technical perspective: The index continues to trade in a narrow range, the market decreased slightly with decreasing liquidity. Short-term selling pressure appeared but was relatively weak and the recovery trend was not affected. The short-term market continues to trade in the range of 1,600 - 1,700 and needs a session with cash flow to confirm the new trend for the next phase.

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 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 upgrades, strong business growth results; or lower valuation levels compared to the general market.