20161010_BSC_Vietnam Daily Review_EN_Lost support 681

Highlight

VN-Index traded in the red for most of the session. Steel stocks kept declining such as HPG, HSG, NKG, SMC. In reverse, the small speculative stocks such as FLC, TCH, OGC, ROS continued to maintain strong increasing momentum. Ending the session, VN-Index lost 9.76 points, down to 674.19 (-1.43%) while the HNX-Index fell by 0.70 points to 84.59 (-0.83%). Liquidity in the morning session remained low and only improved in the afternoon session as investors increased selling pressure when the VN-Index lost 681. A total of 174 million shares on both exchanges were traded corresponding to a value of about 2787 billion VND.

Market breadth was negative, standing at today with 218 advancers and 266 decliners.

Foreigners were net sellers today with approximately 31 billion net value on the HSX, focusing primarily on steel stocks

Recommendation

The market closed at its lowest level of the day and at the same time lost the support level 681, is a sign of risk for the VN-Index in the next session. At the same time, the technical indicators are in favor of short-term bearish signal. Most likely, VN-Index will continue to correct in the next session when Bluechip and Steel stocks can not stop declining momentum. Investors should not open a new position in the present time but should observe movements of the VN-Index at the support levels.