Vietnam Insight

▶ The index opened the trading session with a 7.65-point gap up after reaching a new peak in the previous session. Foreign investors continued their strong net buying, pushing the index to a historical high, surpassing 1,850 in the previous session and approaching 1,900. State-owned banks contributed significantly to the index today, and overall market liquidity improved significantly.

▶ At the close of trading, the VN-Index increased by 12.34 points (+0.67%), reaching 1,867.90 points; the HNX-Index decreased by 2.00 points (-0.80%), reaching 247.10 points. Overall market liquidity showed impressive growth compared to previous sessions, indicating strong demand, exceeding the 20-day average, reaching VND 42.3 trillion, corresponding to 1,496 million shares traded. Foreign investors made net purchases of VND 805 billion, with the largest net purchases in VCB, VHM, and MBB. Conversely, VIX, GMD, and GEX were the stocks with the largest net sales.

▶ Technical perspective: The VN-Index continued to experience strong fluctuations as the index approached the resistance level of the long-term trendline, coupled with high liquidity. The market is clearly polarized, with capital concentrating on the banking and state-owned enterprise sectors, while the real estate sector faces significant supply pressure. The market trend remains positive, with current corrections primarily technical. The 1,800-point level remains a strong resistance level; the market may experience alternating periods of gains and losses to retest this resistance.

In a positive scenario: After surpassing 1,800, the market will continue to rise towards a suitable valuation zone around 2,000. Currently, there are no technical resistance levels ahead. Furthermore, a leading sector will emerge, subsequently spreading to other sectors.

In a negative scenario: The market is likely to correct by 20-30 points to the 1,800-1,820 range before resuming its upward trend.

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. Corrections to the 1,800 level could open up new buying opportunities. For medium-term investors, dips to the 1,720 level present good entry opportunities.