Vietnam Insight

▶ The index opened the trading session with a 3.40 point gap down after the previous volatile session. Foreign investors continued to net sell after four consecutive sessions of strong net buying; however, the market's upward momentum was maintained, contributed by the Vingroup group of stocks. The session saw relatively good spread across sectors, especially among state-owned stocks, during which the market surpassed its new peak.

▶ At the close of trading, the VN-Index increased by 25.60 points (+1.36%), reaching 1,902.93 points; the HNX-Index increased by 0.97 points (+0.39%), reaching 252.85 points. Market liquidity showed impressive growth compared to previous sessions, indicating strong demand, with liquidity exceeding the 20-day average and continuously increasing, reaching 46.0 trillion VND, corresponding to 1,550 million shares traded. Foreign investors net sold 489 billion VND, with the largest net selling value in VCB, VPB, and BID. Conversely, GMD, SHB, and VRE were the stocks with net buying.

▶ Technical perspective: The VN-Index continued its strong upward momentum, closing the trading session with a positive gain of 25.6 points. Oil and gas stocks attracted significant investor attention, with many reaching their upper limit, along with a recovery in the VIC group of stocks. Conversely, the banking sector saw mixed results after a strong rally since the beginning of January. Mid-cap stocks continued to outperform the overall market.

Market liquidity has improved significantly in recent sessions, indicating a return of investor confidence. Technically, the VN-Index is currently in an uptrend, with most stocks having undergone months of consolidation. We expect the VN-Index to continue towards the 2,000-point mark with improving market breadth in the coming months – especially after the Party Congress concludes at the end of January.

From a statistical perspective, we monitor the percentage of stocks trading above the 50-day moving average (EMA50) as an indicator to identify market bottoms. Historically, the VN-Index typically confirms its bottom when this ratio fluctuates between 30% and 40%. With the current figure at 39%, the data suggests there is still significant room for growth for most stocks.