Research Center

Despite the contraction, the short-term uptrend is still intact as the VNIndex form the new higher peak. That implies that traders can increase long positions and focus on leading stocks.

Last week, foreign selling pressure was faded and the market ended up to be net bought. Breaking down by sectors, selling activity mainly focused on Financials, Materials and Industrials whilst Energy and Real Estate attracted the most foreign demand. With ETF flow, Vietnam was divested due to the divestment across VFMVN Diamond and Fubon FTSE Vietnam.

Based on the breakout, the VNIndex confirmed the long-term uptrend. That implies that traders can increase long positions and focusing on leading stocks.

As mentioned above, the long-term uptrend is in place and there is the short-term stable bullish momentum. In this case, investors should hold the current positions and new positions (captured at 1,300 pts zone) on leading stocks.

Surging commodity prices and increasing inflation recently pose a considerable risk to global economic stability. However, the majority of global economists and monetary policymakers just saw this phenomenon as a transitory factor, and this trend would eventually reverse to a normal track in the medium- and long- term. Regarding Vietnam's situation, we saw a stable demand-supply balance in major commodities and well-controlled price conditions. The inflation shock in the near term, if it happens, would be expected to be transient and bear a little risk to the economic stability.

Despite the recovery, the selling pressure is still intact at high prices. Therefore, the traders should be careful and wait for more signals

We expect that foreign ETFs will sell HPG, VRE, and SBT the most with 11.4 million, 8.2 million and 7.1 million shares. On the buy-side, STB, POW, and HSG will be bought heavily with 22.8 million, 9.6 million, and 5.3 million shares.

Market sentiment has become cautious in the short term because of selling pressure at a high price. Therefore, the traders should be careful and wait for more signals.

Cash flows into members of Vingroup, which pushes the market up. However, the confirmation signal of uptrend is necessary to increase the long position because of selling pressure at the high price. Therefore, the traders should be careful and wait for more signals.