20170407_BSC_Vietnam Daily Review_EN_Reversing the trend thanks to oil and gas

Highlights
The market today had a strong correction at the beginning of the day, under significant impacts of VNM to the VN-Index and ACB to the HNX-Index, moving the market closer to the 720 support level. However, towards the afternoon, the market reversed the declining trend to increase to the 728 points level. The market spotlight was pointed to GAS and the oil sector under strong oil price surge. Together with the oil& gas sector, MSN, STB, VIC, ROS, FPT, and other sectors such as beverage, steel, plastics also contributed to the reverse. Market liquidity had an unexpected increase in the negotiated trading value (of VND 1,851 billion) to VND 5,270 billion.  In which, significant trading deals were recorded at NVL (6.5 million units), and MSN (27.7 million units). VN-Index closed the day at 727.95 points, increased by 4.73 points (+0.65%), while HNX-Index dropped by 0.56 points to 90.15 points.

Recommendation
Closing the session, VN Index succeeded in breaking the 725 resistance, however this condition was only the “warm heart, cold hands” because the market breadth showed negative signs with 153 bearish shares, compared to 115 bullish shares. The major contributor to the increase of HSX’s index was GAS. The latest military activity of American created the pressure to the crude oil‘s supply, making GAS fluctuate in a green light, but this action of Trump’s Government could harm investor’s philosophy in the context of that gold future price experienced a strong gain today. Breaking the 725 level with an unsustainable motivation in the weekend session doesn’t prove that the market could maintain the increase. Investors should enhance the proportion of cash/ stock, and pay attention to the information coming from global market. It is ensured that the latest action of the American will not create more negative effect before evaluating taking a long position on fundamental stocks that took benefit from quarter I business result.