20170306_BSC_Vietnam Daily Review_EN_The impacts of ETF

Highlights
The market marked the beginning of the week with a strong upward movement to nearly 718 points, with improved liquidity as compared to last week. Today market leaders are ROS and FLC, as well as, the consensus of almost all Blue-chips stocks. Other stocks that were selected to FTSE Vietnam Index such as DXG and HBC in the construction – real estate sector also recorded significant gains. The market also had the well performances of VJC, VIC, VNM, the rubber, banking, and securities-investment sectors. Market liquidity improved from last week, towards VND 3,077 billion, with capital flows to all sectors. However, there was less consensus in each sector, being replaced by market fragmentation, such as the banking and aviation sectors. Today capital mostly flowed to ROS, as well as, VJC, FLC, DXG, HBC, HPG, and VNM. Especially, there were considerable private transactions of VNM, CHP, CTD, and EIB. VN-Index closed at 716.29 points, increasing by 3.67 points (+ 0.52%). 

Market recommendation
Following the rally coming from the last session of last week, VN-Index today reached the increase at the beginning of the morning and expanded its breadth to the end of the afternoon session. The effect created by FTSE Viet Nam ETF with the bright point at ROS has helped the market to be in a bullish trend. However, under the current condition, it is difficult for investors to forecast the market due to the factors relating to the selling of ETFs at other stocks and the probability of surging FED rates in March. We recommend that investors should keep the proportion of cash over stocks at a high level and should not take a long position on shares, which had strong momentum of increase in the recent sessions. The purchases of fundamental stocks should be considered when supporting information is published from Annual shareholder meetings. BSC believes that VN-Index will continue to test the sustainability of the resistance level at 715 and the index could fluctuate in a narrow band around this area in the upcoming sessions.