Vietnam Insight

▶ The index opened the trading session with a gap down of 3.63 points after the previous day's sideways trading. Foreign investors continued their 5th consecutive net buying session, pushing the index to a new historical high, surpassing the 1,800 mark during the session. However, negative news regarding Vingroup's stock group put pressure on the VN-Index, causing a sharp correction in the ATC session.

▶ At the close of trading, the VN-Index fell 39.97 points (-2.24%), to 1,742.85 points; the HNX-Index fell 1.62 points (-0.64%), to 250.98 points. Market liquidity decreased compared to previous sessions, remaining below the 20-day average at VND 28.6 trillion, corresponding to 948 million shares traded. Foreign investors made net purchases of VND 614 billion, with the largest net purchases in VHM, STB, and MCH. Conversely, GMD, DGC, and VIX were the typical stocks with net purchases.

▶ Technical Perspective: The market recorded its first historical high, surpassing the 1,800 mark with improved liquidity in recent sessions. However, the index failed to maintain the 1,800 mark until the end of the session despite strong net buying from foreign investors in the last 5 sessions. News of Vingroup withdrawing from the North-South high-speed railway project negatively impacted Vingroup stocks, leading to a sharp correction in the VNINDEX.

In a positive scenario: The market recovered positively and surpassed 1,700 (temporarily breaking out of the 1,600-1,700 sideways range) with improved liquidity, better market breadth, and the return of foreign investors. We believe the market will encounter some resistance when returning to the previous peak and will fluctuate around 1,800 before capital flows improve after the Party Congress in early 2026 concludes. Negative information regarding Vingroup's stock group may continue to impact the index in the coming sessions.

In a negative scenario: The downward trend continues to intensify with increasing trading volume, and no bottom-buying pressure appears around the 1,600-1,650 point level. The market could then continue towards the 1,500 support zone and lower price levels for testing.

Strategy: Investors need to select suitable stocks in the context of the VNINDEX index being strongly influenced by the performance of the VIC group. Medium- and long-term investors can begin to gradually disburse funds into stock groups with good business results and sufficiently attractive discounts, such as the banking, finance, and public investment sectors. Shorter-term investors can look at cash flow and price improvements to select stocks in sectors such as electricity, industrial parks, and technology…