20170118_BSC_Vietnam Daily Review_EN_Banking stocks corrected

Highlight

VN-Index traded positively since beginning of the session while Banking stocks maintained the rise from the previous trading session. CTG, BID, STB were traded with high liquidity and a strong rebound. However, by the end of the session banking group suffered strong profit taking and their correction made VN-Index fall to lowest level at closing. Thanks to the largecap stocks like SAB, GAS positive increase, VN-Index did not lose too many points and closed at 683.28 (-0.21%), HNX-Index also lost 0.64 points to 83.3. Market liquidity fell slightly to 110 million shares changed hands, corresponding to trading value of 1983 billion.

Recommendation

VN-Index fell slightly due to banking stocks correction and less liquidity than the previous version. Profit taking at zone 688-690 makes it hard for VN Index to break beyond. However, VN-Index has been moving well in the short term rising channel, and will not decline sharply. In the context of low and concentrated smart money in a number of sectors in the short-term, investors should avoid investment risk if investing in the industry groups are being ignored such as steel, building materials, oil and gas. Investors may pay attention to sectors are being supported fundamentally like fertilizer, banking, rubber when these groups reduced to the levels of support.