20160916_BSC_Vietnam Daily Review_EN_High volatility due to ETF reallocation

Highlight

The morning session was quite quiet with the total trading volume reached 60 million shares only. The pillars of the stock market such as MSN, VNM, VCB, KDC declined, causing the VN-Index also sink in the red. However, the afternoon session became more exciting when the reallocation transactions of the ETF was pushed in by the end of the session. The indexes were fluctuating sharply in ATC trading with volume spiked to more than 280 million shares traded equivalent to 5600 billion VND as of the end of the session. VNM continued to be under strong selling pressure, dropped deeply together with KDC, VCB, BVH, dragging the VN-Index close down by 4.87 points to 651.31 (-0.74%), the HNX-Index fell by 0.056 points to 82.36 (-0.67 %). Notably, the stocks that ETF bought strongly such á VNM, HSG, VCG dropped while the stocks have been sold out such as HPG, SSI, VIC, PVD, PVT were unchanged or rising.

Recommendation

VN-Index closed at the lowest level of the day due to strong pressure from the reallocation of the ETF at the end of the session and lost the support level MA45 656.5. The technical indicators remain negative. Nevertheless, several indicators like RSI and MFI are moving fast to oversold zone. At the same time, VN-Index is also near the reliable support 650 and pressure from the reallocation phase ETF removed will facilitate the VN-Index to recover in the first trading day next week. Investors are recommended to maintain portfolio acquired in recent days and observe price movements and volume of the market for trading strategy accordingly

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