20160714_BSC_Vietnam Daily Review_EN_Sudden correction

Highlight

Yesterday saw a correction of stock markets around the world due to selling pressure following recent rally along with impact of deep fall in oil prices (-4.4%). However, opening today trading session, oil has recovered slightly, helping Asia market opened in green. The possitive sentiment led Vietnam market had a good start today with the lead of Insurance stocks. Unexpected movement occurred at the close, the stocks met strong selling pressure in ATC session, the VN-Index plummeted 8.43 points, and no longer maintain over the level of 670. Foreign investors remained at net-buying position in Banking and Blue-chip stocks.

Recommendation

The market closed at 666.69 points, down by 8.43 pts or 1.25%, the end of session selling pressure weakened market demand quickly and suddenly while index was trying to overcome the resistance at 680 points which noted by BSC yesterday. However, market indicators still moved in the safety zone and liquidity has shown no signs of weakness. Therefore, VN-Index still follows mid-term uptrend and investors can increase the proportion of shares in the low price range when market corrects to 660 supporting level in short-run.