20170314_BSC_Vietnam Daily Review_EN_High risk market trend

Highlights

Three indices closing above reference price today had ended the downward trend carried on from last week. In the morning trading session, GAS and MSN were leaders of the market, pushing VN-Index higher while downward pressure from VJC and SAB as investors locked in their profit had limited the upward trend. Positive trading signal appeared in banking and financial service stock group in the morning with the increase in highly influential stock group such as VCB, ACB, CTG, STB and BVH. However, this trend could not be maintained in the afternoon session as almost all of these stocks closed at or even below reference price. Seaport company stock also experienced a negative trading day as well with PHP, CDN closing below reference price. Real estate and construction material stocks still attract cash flow such as NVL, ROS, CTD, VCS. Foods and beverage group experienced a positive trading day with rising price of MSN, VNM, DBC and especially SAB (major recovery in the afternoon session of SAB had contributed 1.73 point to VN-Index). VN-Index closed at 714.71 point (0.64% above reference price). Investors’ conservativeness continued to lower today market liquidity.

Market commentaries

After the yesterday corrected session, the market has rallied and fluctuated around the 715 points. Market liquidity is maintained at the same rate as that of the previous session. Fluctuation margin is maintained at a wide range of 7.2 point, corresponding to a h. In today session, investor start turning their attention toward BCs stock that belongs to the Food and Beverages industry and the utility industry, which are all safe industry. BSC expects the market to continue fluctuate within the range from 710 to 715 point, especially when many investors have a conservative approach toward the effect of “FED raising interest rate” expectation. Incorporating today market reaction, BSC still maintain a negative perspective for this and recommend investors to maintain their cash and good fundamental stocks proportion of their portfolio.