Vietnam Insight

▶ The index opened the session with a slight gap down 0.67 points despite the previous session being a market recovery session. Domestic buying power in today's session was not enough to offset the strong net selling power of foreign investors. The index recovered during the session but was quickly pushed back below the reference level. The market's decline spread across many industry groups. 

▶ At the end of the session, the VN-Index decreased by 10.92 points (-0.66%), to 1,649.00 points; the HNX-Index decreased by 2.33 points (-0.87%), to 265.03 points. Market liquidity in the correction session improved compared to previous sessions, but liquidity continued to be lower than the 20-session average, reaching VND 26.7 trillion, equivalent to 962 million shares traded. Foreign investors returned to net selling with a strong net value of VND 647 billion, with the largest net selling value being DGC, VND and MWG. On the contrary, HPG, HDB and DGW were the typical net buying stocks.

▶ Technical perspective: VN-Index faced slight correction pressure when moving towards 1,650-1,700 points, the decline was concentrated in the last 15 minutes of the session. The VN-Index's decline was in the context of a small spread (lower than the average ATR), with an average trading volume. The positive point is that after a rapid decline at one point, the market did not experience a sell-off and foreign investors once again returned to net buying at the end of the trading session. The main trend of the VN-Index is still sideways at 1,600-1,700 points, the psychology of the buyers is generally quite positive when they are ready to absorb if the market declines. This development needs to continue in the following sessions if the VN-Index is expected to maintain its recovery trend.

In the positive case: The market is showing signs of early balance at the 1,600 point area, with liquidity declining sharply across the market and institutional cash flow starting to spread to industry groups with good growth prospects. We believe that VN-Index will trade in a sideways trend (1600-1700) for the rest of 2025, and the cash flow is expected to be stronger after the Party Congress in early 2026.

In the negative case: The downtrend continues to increase with trading volume gradually increasing in a downward direction, and there is no bottom-fishing force around the threshold of 1,550-1,580 points. The market may then continue to move towards the support zone of 1,500 and lower price zones for testing.

Strategy: Investors following the trading school can observe the market reaction around the 1,650-1,700 zone. If the correction sessions do not cause the index to fall out of the sideways channel, this could be a good opportunity for investors following this school to disburse again. Investors with medium and long-term investment styles can start to disburse part of their investment in stock groups with good business results and attractive discounts such as banking, finance, construction materials, etc.