20170424_BSC_Vietnam Daily Review_EN_Losing the 710 supporting level.

Highlights
VN Index today closed at 709.39, going down by 0.42%, implying the third bearish session. HSX’s index covered by the red at the beginning and the decrease amplitude became wider after that. Market demand came back at the start of the afternoon brought the hope to investors, but strong pressure of sale in the end period made VN Index significantly declined, even losing its 710 supporting level. Market liquidity continued reflecting the anxiety of investors in which the trading value only reached VND 2.823 billion and market breadth showed the negative sign with 165 bearish shares, comparing to bullish stocks. VN 30 took a correction, making the market weak. The leaders of this group in the session today were VCB, VIC and VNM whereas EIB, GAS and MSN helped VN Index not to strongly correct.  New listed stock, PLX also went down, contributing to the decrease of VN Index. Several sectors experienced a drop today, such as Aviation (VJC, HVN), Beverage (SAB, BHN), Securities (SSI, HCM) whereas Banking group saw a strong divergence, especially STB reached the floor price with more than 14 million stocks in consensus transactions. On HNX, HNX Index took a considerable drop to 88.42 (-0.51%).
 

Recommendation
Market risk became more obvious whereas the major power of the index, VN 30 has got weaker, in the context of that market liquidity was at a low level. VN Index couldn’t keep its point above the 710 today, being a negative sign for investors in next sessions. Investors should be cautious in the current condition and continue making profit for stocks in the portfolio, especially shares having its price reflect the quarter I performance in the recent time. Maintaining a high proportion of cash is essential for investors. Tomorrow, VN Index could test the 710 resistance, however the risk of correction in this week was also weaker, in which the current power of the index is quarter I business result of several firms getting unexpected figures.