20170116_BSC_Vietnam Daily Review_EN_Strong profit taking

Highlight

VN-Index sank in the red throughout the trading session and closed at its lowest level during the day because the main industry groups such as oil and gas, banking, steel, consumer goods declined. The key stocks such as BID, CTG, VIC, SAB, HPG also suffered strong selling pressure and dropped deeply. Ending the session, VN-Index down 7.12 to 677.94 (-1.04%), the HNX-Index also closed in the red, lost 0.29 points to 83.05. The market liquidity continued to remain low with only 111 million shares traded on the two exchanges, equivalent to trading value of 2006 billion.

Recommendation

VN-Index declined with falling in liquidity showed that investors were inclined to take profit. The key sectors declined with negative market breadth makes short-term prospects of the VN-Index is not really bright. Some technical signals such as PSAR and ADX also started to become negative. Investors should carefully observe the movement of the VN-Index at the support level of 675 EMA corresponding to 15 points as well as cash flow before entering the market.