20170426_BSC_Vietnam Daily Review_EN_Coming back to the 710 support

Highlights
Wednesday’s market witnessed that the green coming back to the index after four trading sessions in the correction. VN Index opened with a familiar script in which cautious transactions covered by the red had appeared. However, at the end of the morning, market demand became stronger and this action was maintained within the afternoon session, helping HSX’s index close in the bullish trend. The index closed at 710.04 (+0.35%). The liquidity was strongly improved, getting VND 3.488 billion in trading value and market breadth showed the bright signs with number of bullish shares (170) got doubled than that of bearish ones (85). The major power of the market today came from VN30, especially GAS, STB, VNM and SAB. On the contrary, PLX’s decrease and negative fluctuation of ROS, being the major factor limiting the index’s rally. Some sectors positively fluctuated today were Banking group (STB, MBB, BID, CTG), Fertilizers (DCM, BFC, LAS, DPM) and Construction – Real Estate (DIG, DXG, HBC, CTD). ON HNX, HNX Index went up by 0.79%, to 88.55.

Recommendation
The market recorded the most positive trading session from the start of the week in which the liquidity obviously went up. Moreover, breaking the 710 support could bring the confidence to investors in the context of that there was no macroeconomics information supporting. The market showed the positive signs, however investors should be cautious because it is normal for VN Index to recover after a chain of correction. Investors might wait for that VN Index test the 710 support in next sessions. If it succeeds in that, there will be a good indicator for starting a new long position, especially stocks of VN 30 getting good business figures but taking the bearish trend in the recent time.