20170217_BSC_Vietnam Daily Review_EN_VN-Index continued to correct_Company Update_VGT- Vietnam National Textile and Garment Group

Highlights
After strong fluctuations during yesterday session, the market today experienced several adjustments, but showed no sign of positive movement. From the morning session, the selling pressure increased significantly, pushed down several BCs from their reference prices. For example, VIC, HPG, VNM, and the rubber sector tumbled. Besides, there are stocks that continued their uptrends such as POM or ACB, VCB from the banking sector, and especially EIB with a dramatic rise to its cap. After a slight increase at the beginning of the morning session, VN-Index started to fall with an accelerating pace in the afternoon session. This is maybe due to investor cautious sentiment after recent market rally as well as profit realization pressure in the market. During the afternoon session, there is a positive trading trend maintained among the construction sector with ROS, CTD, FLC. The market liquidity slightly dipped, but is still at high level, with a total trading value of VND 3,545.79 billion and a private deal value of VND 362 billion.
The two markets closed oppositely, with HN-Index recovered to 85.88 points (+0.28%), while VN-Index closed this week at 707.83 points (-0.21%).

Recommendation
Today’s market witnessed a correction after VN Index broke out the resistance level at 710 points in the previous day because investors make short term profit. Market cash flow maintained its strong divergence, creating several attractive chances for investors. Market liquidity was still at a high level though it saw a drop today. The reasons could be that the market psychology is in caution. Investors are waiting for a lower area of the index to take their long position. BSC states that VN Index could continue getting a correction around 710 at the beginning of next week. Buyers should maintain their buy & hold strategy and purchase fundamental stocks after the market remains stable.