20170321_BSC_Vietnam Daily Review_EN_Cautious transactions

Highlights
Today, stock market witnessed that VN Index fluctuated around the resistance level at 715. The green light appeared on HSX from the beginning, even participating in testing the durability of 720 resistance. However, this condition only maintained in a short time before the pressure of sale became stronger, which made the index move in a narrow amplitude (compared to the reference price in the previous session) in the remaining time of the session. Market liquidity on HSX was higher than that yesterday, implying VND 3,877.7 billion in trading value. The market breadth showed negative signs because there were 128 bearish shares, compared to 124 bullish ones. VNM became the leader on the increase in HSX today thanks to experiencing a 1.3% gain. Banking sector was the major contributors to prevent the market from taking correction due to the help of VCB, CTG, BID. Besides, the Construction (CTD, HBC, ROS) also saw a considerable increase. On the contrary, Beverage stocks (SAB, BHN) and Real Estate ones (VIC, NVL) came into the bearish trend. On HNX, the index closed at 90.13, (+1.23%), meaning that it succeeded in breaking the strong resistance at 90.

Recommendation
The VN-Index today moved with positive trend with continuously improved liquidity. However, market movements at the beginning of the day demonstrated the VN-Index did not generate sufficient uptrend force to break out of the 720 resistance, leading the index to move in a narrow breadth to the end of the day. While ROS, which imposed significant downward pressure to the market yesterday, bounced back with an increase to support the market today, market fragmentation appeared between the Blue-chips and within each sector. This phenomenon presented a rising profit realization of investors and the market tomorrow is expected to be under correction for its strong upside on Monday. Investors should continue to watch out for ROS, avoid following market capital flow, but keep tracks on business performances and outlooks of companies during this shareholder meeting period to pick good fundamental stocks.