20160901_BSC_Vietnam Daily Review_EN_Bluechip declined

Highlight

The market fell from the openning and the red color extended throughout the session. Closing the first trading day in September, VN-Index down by 5.44 points to 669.19 (-0.81%), HNX-Index down by 0.33 points to 84.04 (-0.4%). The liquidity on the market is stable with over 142 million shares traded corresponding to value of about VND 3277 billion. Most Bluechip were in red such as VCB, VNM, MSN, GAS halted VN-Index from rallying. There was time that VN-Index fell about 10 points, however, strong demand pushed VN-Index back and kept market breadth balance. The focus of the session continued to put on the VCB when it kept correcting and suffered strong selling pressure from Foreigners. Foreign investors remained net sellers on the HSX with the net value of about 187 billion, net buyers on the HNX. The market breadth was fairly balanced with 230 advancers and 213 decliners.

Recommendation

Unexpected market correction today due to selling pressure on some key stocks, and selling pressure of foreign investors grew. The key shares such as VCB (-1.5), VNM (-2), MSN (-2), GAS (-0.5), CTG (-0.2) took away about 4.6 points of market. Market maintained liquidity, the correction does not affect the majority of shares in the market, the money is still in the market for small-cap stocks, Technology, Pharmaceutical and Rubber group were also more active today.In addition to the large-cap stocks have a strong influence on the market index , cash flow focused on smaller capitalization stocks. Market can test the resistance level of 660 points again affected by ETFs, reallocation investors have the opportunity to participate in the fundamental shares with good business results, should be ready for further correction, however.