20170420_BSC_Vietnam Daily Review_EN_The red covered

Highlights
Today’s market moved in an opposite way, comparing to recent trend of the indexes. After fluctuating in a narrow area at the beginning, around the 715, VN Index experienced a considerable correction . “Bottom fishing” action helped the market to recover at the start of the afternoon, but the pressure of selling that  became bigger at the end made VN Index close at 712.66 points (-0.57%). Market liquidity today continued being narrow with only VND 2,735 billion in trading value. Besides, market breadth reflected the cautious psychology of investors in which there were 141 bearish shares, but only 114 bullish stocks. VN 30 was the major factor making VN Index decline, for example: VIC, GAS and VCB respectively contributed 0.88, 0.71 and 0.67 to the decrease of HSX’s index. Banking group (BID, CTG, EIB) was the main contributor to the index today whereas some sectors such as Sugar (BHS, LSS, SLS) and Fertilizers (DCM, DPM, BFC, LAS) saw a divergence. On HNX, HNX Index maintained its correction, falling down to 88.47.

Recommendation
Anxious psychology of investors was obviously shown on the Thursday on which VN Index took a correction and market liquidity couldn’t be improved.  Information of Quarter I performance of fundamental firms that getting benefit from business cycle has been published, however investors have preferred  protecting their portfolio against risks coming from global politics as well as the pressure to sell became bigger after a long time of VN Index’s increase. On next sessions, short term investors should limit purchasing and wait for clear signs of the market index. VN Index could currently maintain the correction in the context of that VN 30 has got weaker.