20160829_BSC_Vietnam Daily Review_EN_Surprise at session end

Highlight

Market rallied from session beginning while the key stocks like VNM, BVH, VCB, MSN were increasing positively. However, the rally that only focused on some Bluechip helped market rise strongly, up nearly 12 points at some point, however, didn’t spread over the whole market, keeping market breadth negative in both sessions. By the end of the session, BVH, VCB were abruptly pulled back to around the reference price, making VN-Index fell sharply, dragging many others stock down aggressively such as Bluechip HPG, PVD, GAS, HSG. Ending session, VN-Index increased only 1.69 points to 669.44 (+ 0.26%) and HNX-Index fell 0.72 points to 83.12 points (-0.86%). Market breadth remained negative with 133 gainers and 286 decliners. Foreign investors were back to net buyers with around 53 billion on the HSX, focusing mainly on VNM, after the series of 11 consecutive net-selling session.

Recommendation

Despite the slight increase at the end of the session, VN-Index is showing signs of short-term risks. (1) The market breadth was negative (2) Although foreign investors were net buyers, they bought in only focusing on VNM and put strong selling pressure on other stocks such as PVD, VCB, HSG, SSI (3) Coming reallocation of ETFs may cause certain abrupt changes in the market (4) market faces difficulty when approaching the peak because of profit-taking selling pressure. From the above factors, the market is likely in the short-term risks and investors are recommended to hold the stock exposure at safe levels.