20170414_BSC_Vietnam Daily Review_EN_VN-Index corrected strongly

Highlights
VN Index covered by red light in the last trading session of this week due to the investor’s worry about global politics and military risks. VN Index experienced a drop from the beginning and the acceleration became higher after that, the biggest decrease within the session reached 10 points. However, the action of “bottom fishing” of several investors from the end of the morning to the afternoon helped the index narrow the drop. The index closed at 718.45, going down by 5.9 points. Market liquidity slightly increased, compared to the previous session with VND 3,528.5 billion in trading value. The market breadth showed negative signs in which there were 186 bearish shares, but only 85 bullish shares. VN30 continued being weak was the factor making the index down. The losers in this group included VNM (-1.4 points), VIC (-0.65 points). Whereas, BHN, BID, ROS were the major contributors helping VN Index limit the decrease. Some sectors such as: Steel (HPG, HSG), Real Estate (DXG, NVL,…) fluctuated as the index did in the context of that Construction stocks saw a divergence. On HNX, the index couldn’t maintain above the 90 supporting line, reaching 89.64 (-0.43%).

Recommendation
The market corrected strongly in today session. The market scale was negative with the bearish stocks dominated the market (85 bullish stocks/186 bearish stocks). Market liquidity maintained the same trading rate due negative market sentiment originating from the U.S. military strike. The cash flow was distributed mainly into Real Estate- Construction industry  and Sugar cane industry. In next week session, BSC expected the market to rebound and fluctuated around the 720 point when investors readjusted their sentiments form military events in the world. We recommend investors to increase the proportion of good fundamental stocks in the next trading session.