20161018_BSC_Vietnam Daily Review_VN_Liquidity continued to weaken

Highlight
The market has continued negative in most of the morning session, losing the support level of 680 points, the lowest value at the level of 678.13 points, however, the recovery has turned and maintained in afternoon trading.
The recovery was due to the positive impact of the VNM, BVH, and MWG in the second half of the session.In contrast, large-cap stocks such as GAS, ROS have been affected by the decline. Most market indices have rebounded, and positive performance in the session also returned some key industries such as Steel sector, Food sector, Technology sector, Oil and Gas sector. Evolution has also maintained at Construction materials sector and energy sector.Market liquidity has weakened; particularly in trading volume also fell by 25% compared to trading volume last week.Although the market has kept the support level of 680 at the end of the session, reaching 682.02 points, up 1.07 points, but the market does not show that the reliability of this support, as without the support of market liquidity .

Market commentaries
The support level of 680 points might not be sustainable for the market over the coming days, this can not eliminate the possibility of further market correction in the level of support the 670-675 points, while market liquidity is showing signs of decline. Resistance at 690 points will still be a limited market where cash flows are less active. Investors should be cautious in entering the market with the possibility of the general market risk, as most of the large-cap stocks that affect the market index is still in the correction process.