20160912_BSC_Vietnam Daily Review_EN_Sharp correction_Technical views - PVD

Highlight

Market moved negatively on the first day that the new Regulation on the new price tick applied. Blue-chip stocks fell strongly duch as VNM, VCB, GAS, HPG led the decline spread to small and medium shares, weakened market breadth. Ending the session, VN-Index dropped by 7.12 pointes to 659.76 points (-1.07%) while the HNX-Index also fell by 0.79 points down to 83.68 (-0.93%). The market fell from the openning and growing decline lasted until before closing. Almost all industry groups declined except real estate group because VCG VIC and maintained the green color till the end of the session. Liquidity on the market declined with about 139 million traded on the two exchanges corresponding to about 2955 billion VND. TTF unexpectedly stop floor price streak and closed at ceiling, ROS continued to maintain the ceiling price to the 7th consecutive session.

Recommendation

VN-Index continuously lost important supports such as EMA15 and 660, simultaneously, market breadth was very negative also with many discount Bluechip, suggesting downside risk of the market is high. Foreign investors continued net selling accompanied with weakening market demand caused downward pressure on prices in the short term. Technical indicators also signaled a decline in the short term. Investors are recommended to maintain low stock weights in the portfolio when the VN-Index is likely to continue the short-term correction.

Technical Views - PVD - PetroVietNam Drilling and Well Services Jsc. (HSX)