20161024_BSC_Vietnam Daily Review_EN_Bluechip deteriorated

Highlight

VN-Index traded in the red since the opening and maintained the decline until the end of trading hours. Ending the session, VN-Index fell by 6.81 points to 678.02 (-0.99%), the HNX-Index also fell by 1.32 points to 82.88 (-1.57%). VN-Index sank in the red due to the strong correction of Bluechip such as BVH, CII, GAS, MSN, VNM, VIC. Notably, although VNM published positive business results (cumulative 9-month revenue increased by 17.6%, profit before tax increased by 27% over the same period last year, completed 90% of the plan), VNM declined quite sharply, loss of 2.2%. Similarly, FPT corrected slightly (announced Q3 results, cumulative 9-month consolidated sales fell 3% while profit increased 2% compared to the same period last year). In contrast, the Bluechip increased helped VN-Index ease faliing are MBB (ex-right date of dividend in shares 5%), and CTG. BID also gained slightly after announcing 2015 dividend payment in cash of 8.5% is given and reports Q3 results were announced.

Recommendation

The market did not react strongly with Q3 results, the Bluechip after Q3 earnings are starting to correct such as VNM, VCB, GAS, CTD, DPM. This makes the possibility of further decline of the VN-Index in the coming sessions high as there is no firm pillars for market. In addition, the VN-Index closed at its lowest level during the day is also a negative signal for the next session. The technical indicators are currently maintained at negative, suggesting the possibility of further correction of VN-Index. However, liquidity remained at a stable level compared to the previous session showed no sell-off phenomenon occurs. Investors are recommended to observe the market when the VN-Index is likely to continue to correct to 673.