20160905_BSC_Vietnam Daily Review_EN_Selling pressure on VCB

Highlight

Closing the trading session, VN-Index fell 4.64 points to 664.55 (-0.69%), the HNX-Index gained 00.13 to 84.17 points (+ .15%), liquidity is not much changed from the previous trading session with about 153 million shares were traded on the two exchanges. DMC after hitting 100 already turned down while the other pharmaceutical stocks such as IMP, DHG could still keepp its momentum. Steel Group and Real Estate consists of CTD, HBC, DRH, SJS, VCG maintained positive movement till the end of the session. TTF still dropped to floor price. Foreigners were net sellers on the HSX with the net value of about 301 billion, focused primarily on the VCB, PVD, MSN. Market breadth was negative with 214 gainers and 250 decliners.

Recommendation

Market index weakened due to negative correction from VCB, BVH, GAS, EIB, taking away about 1.8 and 1.5 points of VN-Index. Cash flow focused on oil and gas, Pharmaceuticals, Plastics, Construction Materials, Construction stocks, together with more positive liquidity than last week's trading session. Ongoing divergence among market sectors and stocks by size of market capitalization, while the large-cap stocks and small are the decliners, Midcap becomes more active . The market can not recover if there is no contribution of the key stocks and foreign net withdrawal has not ended. In the next session, pressure from the reallocation of the ETF will impact negatively on market liquidity. On the selling side, ETF reallocation will continue to affect the common market. In the current context, investors should reduce the stocks weights in the portfolio, may start long on the shares at a lower price due to supply pressure in the next session. It is possible that the market may correct to the lower support zone 650.