Vietnam Insight

▶ The index opened the session with a gap up 7.99 points after the increase of the last session of the week. The net selling momentum of foreign investors returned, putting pressure on the VN-Index throughout the session. However, the buying power of domestic investors dominated and the index closed above the important resistance level of 1,700 with a large contribution from Vingroup stocks.

▶ At the end of the session, the VN-Index increased by 10.68 points (+0.63%), reaching 1,701.67 points; the HNX-Index decreased by 2.00 points (-0.77%), to 257.91 points. The liquidity of the whole market in the session increased by the index, reaching below the average of 20 sessions, reaching VND 22.5 trillion, equivalent to 714 million shares traded. Foreign investors sold slightly VND 298 billion, in which the largest net selling value was VHM, VIC and VCB. On the contrary, FPT, MSN and VNM were the typical net selling stocks.

▶ Technical perspective: VN-Index continues to maintain its recovery momentum, with the main driving force coming from large-cap groups such as VIC, VHM and VPL. However, market breadth is low as many sectors recorded a slight correction. A positive signal is that foreign net selling pressure has decreased significantly in November, interspersed with some net buying sessions.

Technical indicators generally did not change much. RSI remained in the neutral zone around 60, while VN-Index still traded above the MA20, MA50 and MA200 lines. Investors buying in maintained a cautious stance, and in the absence of new negative factors, selling pressure remained moderate, with no signs of panic selling.

Overall, VN-Index is still in the sideways range of 1,600–1,700, with no clear signal indicating a breakout in any direction. As the index approaches the 1,700 zone while most stocks have not recovered accordingly, we expect the market breadth to gradually improve in the coming time, thereby strengthening the uptrend for next year.

In the positive case: The market is showing signs of balancing 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 the VN-Index will trade in a sideways trend (1600-1700) for the rest of 2025, 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, without bottom-fishing force appearing around the 1,550-1,580-point threshold. The market may then continue to move towards the 1,500 support zone and lower price zones for testing.

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