20170417_BSC_Vietnam Daily Review_EN_A strong correction.

Highlights
The trading session at the beginning of the week showed the opposite psychology of investors between the morning and the afternoon. VN Index started with the green light covering and accelerated the increase. However, after that the gain became weaker and the index was only maintained around the reference. To the afternoon, the pressure coming from sellers got bigger and HSX’s index fell down at the end, approaching the 710 support. VN Index closed at 710.83 (-7.6). Market liquidity surged, compared to two previous sessions with VND 3.628 billion in trading value. Market breadth showed positive signs in which there were 182 bearish shares, getting more dominant than 82 bullish stocks. The major contributors to the decrease of VN Index today were VCB and ROS which contributed 2.2  points to the drop of the index. Whereas, the effort of SAB, VNM and GAS couldn’t prevent the market from strong correction. Sectors such as Bank (BID, CTG), Steel (HPG, HSG), Real Estate (NVL, DXG), Securities (SSI, HCM) were also in the downtrend today. On HNX, HNX-Index continued attending the bearish trend, decreasing by 1.34 to 88.3 points.

Recommendation
Continuing the Friday trading session last week, market indexes proved the worry of investors in the current time about global politics information. The session today  witnessed that market liquidity increased and the loss of VN Index became bigger, showing that investors has tried to liquidate the portfolio, enhancing the ratio of cash over stocks. In the next session, the cautious psychology could appear again and VN Index might test the sustainability of the 710 support. In the current context, maintaining a high proportion of cash over stock is a necessary thing. However, investors should follow the correction of fundamental firms. There has been so many stocks getting benefit from the bright prospect of their sectors and better quarter I performance has recently experienced a strong drop. Investors might wait for purchasing these shares in the next correction.