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Foreign demand slowed down whilst selling pressure stayed at high level, pushing the market to ended up to be net sold. Net sell value was USD6mn. With ETF flow, the inflow has been active across Vietnam for 4 consecutive weeks as well as demand stayed at high level. Inflow was USD14mn. Although there was the active inflow, demand focused only on Fubon ETF whilst other major ETFs such as VFMVN30 ETF, VFMVN Diamond, VNFin Lead, and KIM Growth VN30 ETF, FTSE Vietnam experienced the outflow or the insignificant flow of money.

Last week,trading volume dropped, recording at 60mn shares, down 20% WoW. However, trading value remained at high level, recording at VND38bn due to the active rebound phase across the major market. By underlying asset, covered warrants which have HPG as the underlying asset continued to attract the most of trading interest from both domestic and foreign investors.

Long VN30F2304 after ATO session and stop the loss when there is the closing price below 1,060 pts level. (Hourly chart)

Long VN30F2304 after ATO session and stop the loss when there is the closing price below 1,030 pts level. (Hourly chart)

Although the VNIndex closes above the 1,050-pts threshold, the downside risk is still intact due to selling pressure at a high level of around 1,100-pts. Therefore, traders should stay on the sidelines.

On Mar 30, Hoa Phat Group (HPG) held the Annual General Meeting. The company targets a VND150,000bn revenue and a VND8,000bn NPAT amid weak demand. The company has been approved to not pay dividends for 2022.

Rice export volume rocketed by 109% mom and 80% yoy to 900,000 tonnes. Meanwhile, rice exporting value surged by 108% mom and 95% yoy to USD480mn in Mar-23.

1Q23 shows the negative impact of the weak global demand on Vietnam’s economic activities, with a slowdown and even a reduction in export-related sectors. The export and export-oriented production saw significant declines in the first quarter of 2023, and the fruitful consumption in the first normalized Tet could not reverse the slowdown. On the upside, we saw improved industrial production, less severe trade performance, a tourism return, and well-controlled inflation in March, providing hope that economic activities would accelerate in the next quarter.

With short-term movement, selling pressure is still active and the instrument still follows the flat period with unclear trend which is defined as the risky trading environment. Traders should stay on the sidelines and wait for the accurate market swing and capture the trading point later. (Hourly chart)

The VNIndex closes above the 1,050-pts threshold for 3rd consecutive gaining session, however, the downside risk is still intact in the short term due to selling pressure at a high level of around 1,100-pts. Therefore, traders should stay on the sidelines.