Vietnam Daily Market Recap Jul 20, 2022

Market commentary: The VN-Index convincingly passed through a strong resistance level

Following a V-shaped rebound yesterday, the index continued to rise throughout the day on the back of significantly increased liquidity, ultimately finishing the day 15.8pts higher at 1,194.1pts. Wall Street stocks rallied on Tuesday, while the dollar weakened, as US earnings season entered full swing and investors assessed the future path of monetary policy; VN-Index opened positively with a gap up of 9.8pts. The widening gap prompted the market to breach the key Technical Moving Average 20 (1,184.4pts) resistance level, bolstering bullish sentiment. Indeed, trading volume picked up speed within minutes, focusing on stocks that successfully tested its MA20 support level, such as Securities, Construction, Real Estate, Public Investment and Material. The index reached a high consensus and pushed further into bullish territory in the morning on the backdrop of synchronized gains in the VN30 basket and Banking. After the VN-Index got close to the psychological resistance level of 1,200,0pts in the afternoon session, selling picked up across the board, creating a reversal and correction. Nonetheless, investor demand was high, and the market only fell marginally around 1,194.0pts before beginning the ATC session. Notably, the index rose, with gainers making up 70% of the market and liquidity rising 34% over the previous session, suggesting significant capital flow and spread across numerous groups. The majority of the index’s gains came from small and medium-cap stocks. In fact, the leading groups VCB (+1.7%), VHM (+1.5%), BID (+2.1%), CTG (+1.9%), GVR (+2.6%), and GAS (+1.1%) only contributed 5.1pts, while the losing groups VIC (-0.9%), HAG (-6.9%), HNG (-6.9%), IMP (-5.4%), and PHR (-1.7%) subtracted 1.2pts. At the end of the session, the VN-INDEX increased by 1.3% to 1,194.1pts, and the HNX-INDEX rose by 1.6% to 288.9pts.

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