20160802_BSC_Vietnam Daily Review_EN_Sharp correction_Company Updates - SHI

Highlight

The market witnessed a strong sell-off. The VN-Index plummeted by 12.33 points, or 1.9%, decrease to 636.05 points. Liquidity increased significantly today. The two stocks which had most positive contribution to the Index were not blue-chip stocks but FLC and KBC, in which FLC hit the ceiling price after positive business results information. Except BVH unchanged, the majority of large-cap stocks declined today, including VCB, VNM, MSN, CTG, BID, VIC, HPG and GAS. The market was negative from the opening, the strong downtrend then continued throughout the morning and early afternoon. The trading became more stable at the end of the session, however, VN-Index had been knocked off the support level of 640 points.

Recommendation

The market had a negative session as we expected, broke through the strong support at 640-645 which was set a long time ago, trading volume spiked. The highlight of the session belongs to real estate stocks with trading volume surge such as KBC, FLC, ITA, in which KBC and FLC gained well. VN-Index corrected to the lower bound off rising channel set from early this year. If VN-Index failed to hold support zone at 635-630 in the next session, it is likely that a strong selling pressure will continue to bring the VN-Index to 615-620. Investors should not predict bottom of the fall and wait till VN-Index back to equilibrium.

Company Updates - SHI - Sonha International Corp (HOSE)