20160915_BSC_Vietnam Daily Review_EN_Before ETF allocation

Highlight

The market showed efforts to rally from the beginning of the session, there was time that VN-Index increased over the threshold of 660 points, however, selling pressure on Bluechips such as MSN, VNM, GAS led indices decline and closed in the red. However, the VN-Index still kept support 655. Ending the session, VN-Index fell by 0.46 points to 656.18 (-0.07%), the HNX-Index fell by 0.46 points to 82.92 (-0.55%). Market liquidity improved slightly with about 146 million shares traded equivalent to 2263 billion VND. Stock with value smaller than 10000 VND was not attractive today and sold out strongly. Foreign investors remained net sellers, maintained focus on net selling VNM. Notably, foreign investors temporarily stopped being net sellers on PVD, CTD, KDC, HBC. Despite that the VN-Index only dropped slightly, market breadth was negative with 166 advancers and 300 decliners.

Recommendation

The market continued to have a relatively quiet session though liquidity has improved somewhat compared to the previous trading session. Technical indicators maintain negative signal, however, the market is approaching the fairly reliable support at 655-650 corresponding to Fibonacci 38.2. However, investors should still note that reallocation transactions of the ETF in the weekend is likely to cause high market liquidity and large volatility. Investors may also pay attention tothe opportunity to buy shares at a discounted price when selling from the ETF will be strong tomorrow on the case of PVT, PVS, KBC, ITA.