20160803_BSC_Vietnam Daily Review_EN_Keep correcting

Highlight

The market continued to correct due to the negative impact from VCB, BVH, GAS though VNM, HPG HSG, PVT maintained the green color to the session end. At the closing, VN-Index dropped 0.7% to 631.6, the HNX-Index lost 0.6% to 81.3. Liquidity on the 2 floors fell compared to the previous trading day. Stocks of constructional materials (VIT, CVT), steel (HPG, HSG, VIS) and a number of real estate stocks such as HUT, HBC, LDG went against the trend of market correction. Some notable put-through transactions are BCG with 2.5 million units at the reference price and GMD with over 1 million units at prices closer to the ceiling.

Recommendation

The market continued negative developments as we expected in previous report, trading volume declined compared to the previous session and stays below 10-day average. VN-Index even penetrated the support level at 630 during the session before closing down -0.7% at 631.6. Only the steel industry, constructional materials and F&B would go against the correction trend of the market, some impressive gainers including HSG, VIS, CVT, VNM, HPG. The highlight of the session is that foreign investors keep net buy with a large amount up to 170 billion on HSX. Although still closed above the support 630 and supply pressure is eased, possibility that VN-Index has not stopped correcting when the big stocks such as VCB, VIC, GAS and technical indicators are continuously worse. Hence, investors should restrict from bottom fishing and wait till VN-Index balances out.