20160822_BSC_Vietnam Daily Review_EN_Focus HAG, TTF and HNG

Highlight

Closing the session, the VN-Index dropped by 4.6 points (0.69%) to 657.68 points, the HNX-Index fell by 0.42 points (0.51%) to 82.68 points. Market liquidity decreased slightly compared to the previous trading session.The market fell sharply at the close due to lack of support from the main stocks such as VIC, VNM, MSN, HSG. The focus of today's trading session put on HAG, HNG and TTF when all 3 stocks oversold shares were absorbed and trading volume spiked, TTF even closed at the ceiling price. Market breadth remained negative with 162 advancers / 257 decliners. Foreigners were net sellers on HOSE with about net VND 140 billion, net buyers on HNX focused mainly on PVS with net 780 thousand units.

Recommendation

Market liquidity remained stable and some pillars of market has increased slightly, while the VNM, MWG declined, selling pressure from foreign investors on VIC contributed significantly to the overall market drop. Cash flow remained focused on two stocks HPG and HSG, bottom fishing on TTF, HAG brought these 2 stock to top two market liquidity today. Foreign investors, remained net sellers 7th session, weakened the momentum of the market. In the next session, the overall decline is likely to continue to happen, bringing market index to test support near 650. Investors are recommended to limit buying stocks based on market information but the stocks have good base for production and business activities with moderate portfolio weight and buy back if the market maintains 650 points in the next session.