Vietnam Insight

▶ The index opened the session with a gap up 5.67 points after the previous session's increase. Foreign investors' net selling momentum has decreased for the second consecutive session. However, domestic investors' buying power is weakening and the index's liquidity has decreased compared to previous sessions. 

▶ At the end of the session, the VN-Index increased by 3.96 points (+0.24%), reaching 1,684.32 points; the HNX-Index decreased slightly by 0.48 points (-0.18%), to 261.43 points. The liquidity of the entire market in the index's increase session decreased, reaching below the 20-session average, reaching VND22.6 trillion, equivalent to 792 million shares traded. Foreign investors net sold slightly VND11 billion, of which the largest net selling value was VJC, VCB and VIC. On the contrary, POW, TCX and MBB were typical net selling stocks.

▶ Technical perspective: VN-Index traded in a quiet state, mostly sideways with low liquidity. Foreign investors switched to a neutral trading state after the previous strong net buying session. Large-cap stocks returned to their supporting role, helping the index avoid closing in the red. Technical indicators remained almost unchanged from the previous session, as VN-Index continued to maintain above the MA20, MA50 and MA200 lines. RSI remained in the neutral zone, while market spread continued to narrow, reflecting a decline in participation and confidence of cash flow. Buying power remained cautious, and in the context of no new negative factors, selling pressure remained under control, with no signs of panic selling recorded.

On the positive side: The market is showing signs of balance around the 1,600 point zone, 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.