20170323_BSC_Vietnam Daily Review_EN_Getting close to the 720 resistance

Highlights
Today, the market witnessed that VN Index has approached the strong resistance at 720 because the bullish momentum was maintained and extended from the beginning to the end. HSX’s index closed at 719.56, surging by 0.93% compared to the reference. Although market liquidity couldn’t get the level as it showed yesterday, the trading value also kept at a high amount of VND 3,748 billion. Besides, market breadth reflected the positive psychology of investors, given that there were 140 bullish stocks that got more dominant than number of bearish ones (108 shares). About remarkable stocks today, Vinamilk was mentioned one more time as a leader in the uptrend. This stock contributed 2 points to the increase of VN Index. March 23th trading session also saw the bright point coming from Banking stocks (VCB, CTG, STB), Oil & Gas (GAS, PVD, PVS); on the contrary, Beverage sector (SAB, BHN) continued their correction as well as became the major factors that prevented the index from breaking the 720 resistance. On HNX, the index went up by 0.14%, reached 89.09.

Recommendation
The market had a positive trading day in index points, but with a considerable reduction of trading value as compared to yesterday. This decrease in liquidity mostly contributed from ROS. The VN-Index continued to test the 720 level today with a gradual uptrend and ended the day nearby the resistance level. Today positive gain of the market mainly due to the agreement of the Blue-chips. However, market fragmentation could be seen among mid and small caps in different market sectors. VN-Index has continuously tested the 720 resistance level, but not yet to success. As the market is at a sensitive state, investors should be cautious to wait for a clearer trend from the market.