0170216_BSC_Vietnam Daily Review_EN_Shaken Sharply

Highlights
The market today marks a tension trading session with sharp fluctuation after successfully passing the resistant level 710 points. In the morning and the beginning of the afternoon session, VN Index surpassed to the peak 717 points, thanks to the support of big stock such as SAB, GAS, BVH, the agriculture group, rubber group, construction group and most of banking group. However, right after reaching the peak, in the later half of the afternoon session, VN-Index turned back to decrease below the reference level at the beginning and the resistant level 710 just achieved. This is due to the inconsistency in the BCs group, such as VCB, BID in Banking group, VIC, VNM, BVH, SSI, BHN, and the Steel group (HPG, HSG), Construction (VIC) and Petroleum (PVD, PVS). The market today experiences the sharp breadth, the number of stocks which are adjusted is increased strongly in the afternoon session, mostly due to the pressure of acquiring profit of the investors after the market sharply increased in most of the today session. The breadth is shown in each stock, among the stocks which are in the same industry (especially banking and petroleum), and among the BCs stocks. As the result of the relatively strong trading activities in the session, the market liquidity rises 550 bils in compared with yesterday (+19.4%).

Market Recommendation
On 16/2, the market shows a dynamic session and a strongly segmented cash flow at the resistance level of 700 point. Although market liquidity increases well, the profit acquisition pressure for short term led to disunited movement of peer stocks and that in turn, made VN-index unable to maintain its peak level during the session and go back to the beginning accumulation level.  According to our analysis, this sharp shaking session does not have negative characteristic, because it shows that investors were looking for investment opportunities. The cash flow is at high liquidity level. The market is expected to accumulate until it reached the new resistance level of 720 point. Investors continued to maintain their portfolio, and this phenomenon can be considered an opportunity to hold good fundamental stocks at lower price, and limit trading activities that have market element when cash flow in the market continuing to be positive.