20170421_BSC_Vietnam Daily Review_EN_Taking a correction at the end

Highlights
Positive information coming from quarter I performance of big listed companies on the exchange, along with the effect of the PLX’s listing helped VN Index moved in the green from the morning to the start of the afternoon with the wider breadth. However, low demand made the index not to maintain the increase after that and VN Index slightly went down to 712.41. Market liquidity was significantly improved with VND 6.500 billion in trading value including VND 2.773 billion in consensus transactions, especially NVL and MSN. Nevertheless, the market breadth only got balanced with both bullish stocks and the bearish reached 127. The power supporting to the market today came from NVL, SAB and VCB whereas SAB bounced back after getting a considerable correction in the morning, contributing the 0.24 increase to VN Index. On the contrary, CTG and GAS went down, making the index not positively fluctuate within the trading session. The trend of sectors today was strong divergence among constituents such as Securities, Steel, Bank and Oil & Gas… ON HNX, HNX Index surged by 0.46%, closing at 88.87.

Recommendation
VN Index experienced a slight correction, continuing the trend yesterday. However, the optimism of investors became more obvious with stronger market liquidity in the context of that quarter I business result of Large Cap & BCs companies was published. The decrease at the end was prevented by “bottom fishing” action of several investors, focusing on fundamental stocks (SAB, PNJ …), helping the market not to strongly decline. Thus, quarter I performance information of some firms was the major contributor to the fluctuation of the index. Currently, VN Index succeeding in testing the 710 supporting level in next week could be an important basis helping the market to start another increase. Investors should not maintain high proportion of stock in the portfolio and try to wait for reliable indicators of the index.