20170418_BSC_Vietnam Daily Review_EN_ The 710 support is held steadily

Highlights
The market covered by the red at the time of opening. The anxiety showed obvious signs in the context of stronger decrease, making VN Index sometimes approach the 705 supporting level. However, “bottom fishing” action of several investors helped the market recover from the end of the morning and kept this condition to the end of the session, making the HSX’s index close in green light. VN Index closed at 714.93, going up by 4.1, compared to the reference. Market liquidity reached VND 3.557 billion, being similar to the reference. Market breadth clearly improved with 150 bullish shares and 101 bearish stocks. The most important contributor on HOSE today was Vinamilk which contributed 1.32 to the increase of VN Index. Other BCs like MSN, GAS got a similar fluctuation. Some sectors that positively moved today were Securities (SSI, HCM), Bank (CTG, BID, VCB), on the contrary, Construction (ROS, HBC) or Real Estate (VIC, DXG) took a correction. On HNX, HNX Index bounced back to 89.12.

Recommendation
Today’s market surprised investors, especially the strong gain of VN Index at the end. Market psychology became more positive, compared to two previous sessions and the comeback of cash flow at the low price making  HSX’s index maintain above the 710 supporting level. However, in the current context, it’s difficult for investors to be confident in enhancing the proportion of stocks in the portfolio. The  information relating to global military activities could be over when some big stock market bounced back on the previous yesterday, but it’s  hard to forecast VN Index fluctuation, especially what it performed in the morning today. Investors should protect their portfolio with a high ratio of cash and continued waiting for reliable market indicators about VN Index’s recovery. For example: Breaking the 715 resistance tomorrow with an improved liquidity and the cash flow moved steadily among sectors.