Research Center

The stock market losses strongly during the session due to profit-taking activities vibrancy again in the afternoon. Furthermore, the liquidity suddenly rises, indicating investors' caution sentiment as the VNIndex approaches the important resistance zone of 1,240-1,250 pts. However, the uptrend is still intact when this index closes above the 20-period moving average. Therefore, investors should stand aside and observe the next movements of the market.

Massive outflow in 6 consecutive weeks has raised the red flag for the unstable flow of money in Vietnam. In this case, we expect that the flow of money across Vietnam could continue to be unstable in upcoming period and outflow could continue to be active.

The FTSE Rusell announced that the FTSE Vietnam Index will add VIX, but not remove any tickers in this review. Moreover, the MarketVector Vietnam Local Index will not add or exclude any tickers.

The stock market decreased slighly with high liquidity, indicating investors’ caution sentiment at the important resistance zone. However, an uptrend is still present as the VNIndex maintains to end above the 20-period moving average. Therefore, investors should open long positions and focus on leading stocks.

Market recovery for three consecutive weeks in the short term, and the increasing trading liquidity is a crucial confirmation at present.

We expect the stock market to maintain its uptrend with a target range of 1,260 to 1,340 points for late 2023 thanks to macro factors such as (1) Improvement in Foreign Direct Investment and (2) The easy money policy.

Selling pressure comes back again at the important resistance zone of 1,240-1,250 pts, causing the stock market to slow down. The VNIndex decreases slightly with liquidity still at a high level, showing investors’s caution sentiment toward the market. However, the uptrend is still intact as this index maintains to close above the 20-period moving average. Therefore, investors should open long positions and focus on leading stocks.

The FTSE Rusell announced that the FTSE Vietnam Index will add VIX, but not remove any tickers in this review. Accordingly, we expect that FTSE Vietnam ETF will sell HPG and VRE the most with 16.9 million shares and 6.4 million shares, based on data as of 6 Sep 2023. On the buy-side, VIX, VND, and VNM will be bought heavily with 12.6 million shares, 9.2 million shares, and 5.7 million shares. The new weights will be effective on 17 Sep 2023.

The stock market remains to rise strongly in the session with high liquidity, indicating buying signals. Although consolidation sessions may appear around the important resistance level of 1,240 - 1,250 pts, an uptrend is still present as the VNIndex closes above the 20-period moving average. Therefore, investors should open again long positions and focus on the leading stocks.