20170405_BSC_Vietnam Daily Review_EN_Pressure of making profit at BCs

Highlights
Today, the market experienced a drop in a narrow breadth due to making profit at a large number of BCs, leading VN-30 and HNX-30 showed red light from the beginning of the session. After opening, VN Index had broken the 725 resistance, approached 726, but it took a correction after that and maintained that condition to the end. Compared to the reference, market liquidity slightly decreased. Almost Blue-chips saw a strong drop, for example: VNM, MSN, HPG, VIC and BVH. Other stocks moved in a same way were Real Estate- Construction group, Pharmaceuticals, Steel, Plastics, Fertilizers and a big divergence also appeared in other sectors. Major contributors helped to limit the index’s decrease today were BHN and SAB, along with GAS, VCB, ROS, CTG and Medium & Small Cap. The market target continued to diverge, in which although ROS and FLC were selected, investors started to focus on Medium & Small cap stock. VN Index closed at 723.22 (-0.13%) whereas on HNX, HNX Index declined by 0.5% to 90.7.

Recommendation
VN Index maintaining fluctuating in a narrow breadth and faced a big pressure when it tried to break the 725 resistance, even the investor philosophy became more negative, compared to the reference in the context of that HSX’s index closed in red light. In some next sessions, this trend of the index could continue, but if this condition is kept in a long time, there is a possibility of that cautious investors will make profit, protect their portfolio and make the index go down to the lower supporting level. At the moment, information of quarter I business result is the power balancing the market and making the basis to break in the next time. Investors could consider purchasing some fundamental stocks with positive business performance that took a deep correction today. However, maintaining a portfolio with high proportion of stocks (above 80%) could create risks.