20170310_BSC_Vietnam Daily Review_EN_Negative market movement_Company Update_ HPG - Hoa Phat Group JSC

Highlights

The market marked the end of the week with a negative correction of the VN-Index, notably the correction within the trading session of the banking stocks. In the morning, the market moved up briefly with the major supports from the banking stocks, yet these stocks joined forces to bring down the index in the afternoon. This pattern could be demonstrated clearly in VCB, BID, CTG, and MBB. Leading the downtrend today were also the beverage sector with SAB, BHN, the oil-gas sector with GAS, PVT, PGD, the pharmaceurical sector with DCL, DHG, DMC, the fertilizer sector with DPM, DCM, and VNM. The market supporters today were the real estate-construction sector with ROS, FLC, DXG, HBC, VIC, as well as HPG, VJC, FPT, and HT1. However, they could not offset the trend, as there were strong fragmentations within their industries. Fragmentation was also a similar story in the market, with accelerated index drop and high liquidity (only slightly decrease by VND 140 billion to yesterday), demonstrating the relatively clear willings to realize profits of investors. VN-Index dropped by 3.59 points, corresponding to 0.5%, to 712.21 points. Meanwhile, HNX-Index and UPCOM moved in contradiction to increase to respectively 88.04 points (+0.37%) and 57.63 points (0.69%).

Recommendation

After participating in a narrow fluctuation in the morning, the VN-Index experienced a strong drop in the afternoon and its breadth was widen to the end of the session. The resistance level at 715 was broken, implying the obvious attitudes of investors to avoid getting losses in the future, due to the effect of macroeconomics information, such as: oil prices movement, the possibility of FED’s increasing interest rates and the trend of foreigner’s net sale in this week. We believed that the market could still be negative in next week, the VN-Index might recover in one or two sessions, but the overall trend is bearish. Investors need to follow the positive signs of business result in QI/2017 from fundamental companies and they should wait for the better chances after FED makes its final decision.

Company Update

HPG - Hoa Phat Group JSC.