20170105_BSC_Vietnam Daily Review_EN_Trading in narrow range

Highlight

VN-Index fluctuated in a narrow range when liquidity did not improve. The large-cap stocks were strongly divergent, causing the index to fluctuate around the reference level continuously in session. While STB, BVH, VIC, CTG gained, MSN, VNM, BID, NVL dropped points, thus, VN-index could not move far away from the reference level. Ending the session, VN-Index closed near the highest of the day at 675.81 (+ 0.16%), whereas the HNX-Index dropped slightly to 81.33 (-0.25%). Liquidity equivalent to the previous session with 117 million shares traded equivalent to trading value of 2122 billion.

Recommendation

Market was moving in a narrow range with low liquidity when the VN-Index traded around 675 resistance, indicating the cautious psychology of investors. The stocks led VN-Index recently such as steel and banking, finance remained positive though they may likely suffer stronger selling pressure in next session. Investors are recommended to take profit if Index goes up further and observe the volatility of cash flow before deciding to open a new position.