20161109_BSC_Vietnam Daily Review_EN_Strongly volatiled

Highlight

The market fell since the openning amid regional markets stumble due to increasingly higher probability that Donald Trump wins the presidency. By early afternoon trading, the that probability was very, triggering a wave of sell-off, pushing VN-Index down by almost 20 points and lose the strong resistance at 662 EMA 100, almost stocks in bulk plunged. However, VN-Index recovered in the afternoon and regained nearly 14 points, to close at 670.26 (-0.92%), the HNX-Index also rebounded during the session to close at 80.11 (-1.41%). Overall market share dropped but without floor price, suggesting the selling-off has completely stopped in late trading and investor sentiment is not too pessimistic. Market liquidity rose sharply as investors participating in bottom-fishing, a total of 129 million shares, equivalent to trading value of 2858 billion was traded on HSX. PNJ is the large-cap stocks went against the market today together with the BID, MWG and BIC. Meanwhile, the banking group consists of VCB, CTG, STB, MBB corrected sharply. Most industry groups declined. Beer was the most actively traded sectors in the session with a few shares maintained strong momentum such as SMB, THB, BSP. BHN stopped ceiling chain and closed down 5.3%

Recommendation

As expected earlier, unexpected event can always occur causing market volatility. Donald Trump was a big surprise to investor sentiment today that triggered the selling off in the afternoon session but bottom fishing activities have narrowed decline of VN-Index. VN-Index is likely to trade more balanced in the next session and is expected to continue moving in the 670 – 690. Investors are recommended to keep the proportion of stocks at a reasonable level while observing movements of the VN Index after the external factors such as the US presidential election eased down to find trading strategies accordingly.