20170324_BSC_Vietnam Daily Review_EN_Break the 720 resistance

Highlights
Continuing the increase from the previous session, the market witnessed the positive condition today. In the morning, Finance stocks were the major contributors to the market, for instance: BVH, ACB, BID, CTG, SSI and HCM. Pharmaceuticals shares were also in the bullish trend, especially DMC, IMP and DHT. To the afternoon, the Bank saw a strong drop with the decrease of VCB, STB and EIB whereas SHB, CTG and ACB showed their green light. The insurance and securities (BVH, SSI and VND) considerably surged. About Blue-chips, VNM and GAS were believed as stars of VN-Index, making the index go up. After being traded at ceiling price on some recent days, HAG and HNG started to go down this afternoon. Today investors continued concentrating on fundamental shares in different industries. Market liquidity was improved compared to yesterday to reach VND 3,645 billion. VN-Index fluctuated between a 4.8 point range to closed at 722.14 point, experienced a 2.58 point increase (0.36%); HNX-Index increased by 1.46 point (1.63%) to 91.36 point. UpCOM index saw an opposite pattern when experienced a fall of 0.14 point (0.24%) to 57.52 point.

Recommendation
VN-Index continues to have positive gains after breaking the 720 resistance with higher level of liquidity as compared to yesterday. Capital flow continued to spread among different market sectors instead of to only ROS and the construction – real estate sector in the previous period. This gain were mainly due to the increase of several market drivers. However, to the end of the day, strong fragmentation within these stocks prevent the market from making gradual uptrend. Despite that, the 720 resistance level became the new resistance for the index today. This is a sensitive period as the market has yet to establish any clear trend. As the result, investors should be careful and follow the development of the market before purchasing based on the index’s momentum.