20160914_BSC_Vietnam Daily Review_EN_Liquidity tumbled

Highlight

Despite gains in most of the time trading but the market was fairly quiet in the trading with declining liquidity. Except VCB and FPT, the Largecap shares traded fairly quiet and declined, the most exciting transactions were at the small value stocks such as OGC, TTF, ITA (up), FLC, HHS, FIT, VHG (down to the floor) with sharp increase in trading volume. Some stocks gained notably including sugar and banking groups. Market breadth weakened with 188 advancers and 292 decliners Foreign net selling declined to about 40.56 billion on the HSX, while both purchases and sales transaction declined.

Recommendation

Although the market had rallied efforts in the session but ended the session, VN Index closed at its lowest level during the day. The market continued to have a negative transaction as previously expected as most major stocks dropped except VCB, CTD, FPT. Liquidity continued to decline, trading value decreased faster than trading volume, signaling the money was withdrawn from the large stocks to small value stocks. The technical indicators continue to signal negative. Therefore, the probability that the market will continue to correct in the last 2 trading sessions of the week is high and investors can consider investing a small part of capital on good fundamental stocks when prices fall to attractive levels at support 650 - 645. Investors should also pay attention to Fed meeting on 21/9 to decide whether to raise interest rate this month and result of OPEC meeting later this month to decide whether to freeze output.