20170322_BSC_Vietnam Daily Review_EN_Despair

Highlights
In March, 22th session, VN Index closed at 712.94, going down by 0.45%. The green light appeared from the beginning of the trading session and continued expanding its amplitude, even passed through the 720 resistance at some points of time. However, the pressure of sale became stronger, making the index not to maintain its bullish momentum. Investor’s disappointment was obviously shown at the end of the session due to the dramatic number of sale orders and high market liquidity that reached VND 4,331 billion in trading value, getting advanced compared to previous sessions. About the market breadth, the number of bearish shares reached 172, becoming more dominant than bullish ones (85 stocks). The leader in the bearish trend of the index was GAS due to the correction of crude oil price. On the contrary, VNM surged considerably, not making green light turn on again at the end. Some remarkable sectors such as Beverage (BHN, SAB), Steel (HPG, HSG, NKG) and Rubber (DPR, PHR) took the correction. Besides, Banking one (VCB, CTG) declined at the end though these stocks positively supported to the index before that. On HNX, the index couldn’t maintain above the 90 resistance and closed at 89.77 (-0.39%).

Recommendation
The index today broke the 720 resistance with the impact of VNM’s uptrend in the morning and continue to test this level at the beginning of the afternoon session. However, the index suffered strong profit realization pressures to the end of the day and dropped below its reference level at the beginning. Market fragmentation become more transparent, especially among the Blue-chips and the banking sector, which were the driving factors to support the index to break its resistance in the morning. ROS continues to gain in value today, despite its drop in trading values. However, market liquidity remained high thanks to increase trading in many other stocks. We believe that the market will continue its correction tomorrow. During these corrections, investors could consider selecting strong fundamental stocks under the market’s oversold pressure.