20160909_BSC_Vietnam Daily Review_EN_Narrow rise at session end

Highlight

The market traded excitedly in the morning session when the VN-Index surged 672 points before the intraday correction in the afternoon session and closed up slightly 0.81 points at 666.88 (+0.12). Meanwhile, the HNX-Index closed down 0.22 points to 84.47 (-0.25%). Market liquidity declined compared to the previous trading session and only improved near the end of the session with about 151 million shares traded equivalent to about VND 3300 billion on 2 exchanges. VCB had strong gain after the stock price adjustment following bonus shares date, together with VIC helped the market to maintain the green color at the end of the session despite strong selling pressure on VNM. About sectors, most of the steel stocks corrected while stock group suddenly had a positive session. Stocks extended decline streak includes TTF and TNT. In contrast, the ROS continued reaching ceiling price up to 6 consecutive sessions.

Recommendation

Market risk comes from the fact that foreign investors still remain net sellers for more than a month, the market index fluctuates and depends largely on the up and down movement of large-cap stocks. In the next session, the market has the possibility to correct to the support around 650-660, the trading band may become narrower and market liquidity may weaken. Investors can accumulate fundamental shares at low prices for a small weights and increase them when market return to test the lower reliable support zone 650-660.

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