20170327_BSC_Vietnam Daily Review_EN_Positive market movement

Highlights
After breaking through resistance level of 720 last week, VN-Index upward trend continued in today trading session but at slower rate. Index fluctuated between a 4.16-point range, and there was time Vn-index fell below reference price due to the pressure to lock in profit of investors. The upward trend of market decreased as the end of the trading session approached as some Bluechips stock decrease in value and closed below reference price (while VNM, CTG and ROS experienced a rising trend, ACB, VCB and GAS price moved to the opposite direction). VNM was the stock having the largest contribution to the point increase of the index (0.49 point), followed by ROS, VJC CTD. Pharmaceutical companies stock, alongside with financial service and foods and beverage stock group had enjoyed a positive trading day. In contrast, gas and oil stock group (PVD, PVS, PVC), as well as rubber and chemical companies stock (PHR, TRC, DGR) suffered an opposite trading pattern. VN-Index closed at 723.52 point (0.19% higher than yesterday price), accompanied by a rise in liquidity (VND 3,844 billion).

Recommendations
VN-index continue to be above the 720 level with increasing market liquidity. The cash flow of today market continued to be distributed into securities, banking, real-estate, construction and pharmaceutical industry. On the other hand,  stocks belong to rubber or gas and oil industries  decreased when the these industries’ raw material price is experiencing a strong reversal trends. The distribution of the cash flow into different industries illustrate the investors’ strong belief in the market growth. Investors are looking for attractive investment opportunity despite the fact that the market has passed the 720 point. Market fluctuation margin is within the range of 4 points. BSC expect the market to continue fluctuating with a margin of 720 point to 725 point. We recommend the investors to increase their portfolio proportion of good fundamental stocks.