20170302_BSC_Vietnam Daily Review_EN_Liquidity went down

Highlights
Today’s market has continued the correction momentum, following that from the beginning of this week. In the morning session, VN Index experienced a considerable gain, got the highest level at 713.53, however, from that time to the end of morning one, the index only got a 0.01 increase, being worth 709.53 points. In the afternoon, VN Index closed at 707.51, going down by 0.28% from the latest session. HNX- Index closed at 86.61 points (-0.01%). Some BCs such as GAS, VNM, BID, and SAB significantly decreased whereas SAB, VNM were the major contributors making the index decline. Nevertheless, other BCs played a vital role in limiting the decrease of the market, for example: HPG, ROS, VCB…… VJC maintained trading at its ceiling price, reaching VND 123.000 in the context of bearish trend of the market. The cash flow diverged, selecting Small Cap & Penny group. Banking stocks got a strong drop due to the net sale of foreigners on BID, SHB and VCB. Besides, the market observed a big trading volume of consensus relating to VCS, being equivalent to 2.5 million shares (VND 400 bil). The liquidity went down, implying VND 2,845 billion in trading value.

Market commentaries
Trading day today started positively with Vn-Index higher than reference price. There was a time when Vn-Index broke through 710 to reach its highest point at 713. However this upward trend only lasted for one hour at the beginning of the trading day when market declined to end at 707.5 point as stock price of large cap market group fell sharply. Investors continued their interest in mid and small cap stock group. Today market liquidity was lower than yesterday, which showed higher level of conservativeness among investors as Vn-Index showed greater fluctuation compared to yesterday (Vn-Index moved within a 6-point range today, wider than yesterday range of 5 points). In our opinion, market will continue to show correction around 710 point with built-up risk. Investors should limit their liquidation activities, maintain a high proportion of cash and lock in profit from bullish stocks.