20170307_BSC_Vietnam Daily Review_EN_Fluctuation in a narrow range Company Update PXS- Petroleum Equipment Assembly and CNG- Compressed Natural Gas Corp

Highlights
The today market had a correction inside its session under a narrow range. The market was traded under its reference level in the morning due to the corrections of several market drivers such as VJC, VNM, SAB, and BHN, as well as the rubber sector. Then, the market recovered immediately in the morning and moved over the reference level in the afternoon. Today market leaders were still ROS, FLC, as well as other construction-real estate stocks such as CII, VIC, HBC, CTD, and the insurance sector (BVH). Today trading was more intense than yesterday, with liquidity reached VND 3,265 billion in value, together with the considerable fragmentations within Blue-chips stocks, especially in the pharmaceutical, finance-banking, and oil-gas sectors. Market capital flow still focused on the construction-real estate sector such as ROS, FLC, HBC, CTD, KBC, CII, NVL, DXG, as well as, VJC, HPG, VNM. There was also notable negotiated transactions in VNM at the end of the session, as well as, in SBT and NLG. VN-Index slight increased by 0.25 points, equivalent to 0.03%, to 716.54 points.

Market recommendation
After the slight correction within the morning, VN-Index became more stable and only fluctuated in a narrow breadth from the beginning of the afternoon to the end. Market liquidity was still at a high level, however the divergence among the stocks in each sector showed more obvious signs. Due to the lack of positive information, the fragmentation among the Blue-chips could prevent the market from reaching the 720 point resistant level and sideway movement in narrow range could continue to happen, despite stable liquidity and capital flow is still focusing on several sectors. BSC recommends that investors should consider the prospect of fundamental stocks with supporting information from their sector to add them under strong correction session. Investors should be cautious to increase the proportion of stock in their portfolio and should wait for the effect of ETF rebalancing and fluctuation of FED’s interest rates to be reflected to market price before making any investment decision.

Company Update

PXS - Petroleum Equipment Assembly (HOSE)
CNG - Compressed Natural Gas Corp(HOSE)