Vietnam Insight

▶ The index opened the trading session with a gap up of 15.96 points after reaching a new peak in the previous session. Foreign investors continued their strong net buying, pushing the index to a historical high, surpassing the 1,850 mark during the session. The index's upward momentum spread well across sectors, supported by the renewed net buying from foreign investors.

▶ At the close of trading, the VN-Index reached a new high, increasing by 45.31 points (+2.49%), reaching 1,861.58 points; the HNX-Index increased by 2.88 points (+1.17%), reaching 249.40 points. Market liquidity during the session, which saw the index reach its new peak, showed impressive growth compared to previous sessions, exceeding the 20-day average, reaching 35.1 trillion VND, corresponding to 1,140 million shares traded. Foreign investors made net purchases of VND 522 billion, with the largest net purchases in FPT, HPG, and VIC. Conversely, STB, VHM, and BCM were the typical net selling stocks.

▶ Technical perspective: The VN-Index continued its strong upward trend, conquering a new peak at 1,861 points. The upward momentum was reinforced by the spread of capital flows and market breadth leaning towards positive territory. Improved liquidity indicates a proactive investor sentiment. The market continues to maintain a positive short-term trend with stable movement above key moving averages. The MACD signal reinforces the upward momentum; however, the 1,800 point level remains a strong resistance level. The market may experience alternating periods of gains and losses, with the nearest support level around 1,730 points.

In a positive scenario: The market surpasses the 1,800 point resistance level with good liquidity, market breadth widens, and foreign investors return. A leading sector emerges, then spreads to other sectors.

In a negative scenario: The market trades within the 1,700 – 1,800 point range with improved liquidity, better market breadth, and the return of foreign investors. We believe the market will encounter some resistance when returning to its previous peak and will fluctuate around 1,800 before capital flows improve.

Strategy: Short-term investors can participate in stocks showing strong upward signals above the 20-day moving average (MA20), such as banking, oil and gas, utilities, and state-owned enterprises. For medium-term investors, dips to the area near 1,720 present good entry opportunities.