20170427_BSC_Vietnam Daily Review_EN_Breaking the 715 resistance

Highlights
Thursday’s market witnessed the most positive transaction from the start of this week in which VN Index surged by 6.49, passing through the 715 resistance, reaching 716.53. Maintaining the trend yesterday, market index had quickly gone up from the beginning and the bullish amplitude became wider. The liquidity was obviously improved with VND 3.422 billion in trading value, comparing to VND 3.150 billion yesterday. Market breadth today came from Vinamilk that increased by 2.6, contributing to the 1.38 increase to VN Index. Some stocks such as GAS, PLX had a similar fluctuation. Sectors like Steel (HPG, HSG), Pharmaceuticals (DMC, DHG) got bullish whereas several groups taking the divergence among stocks, for example: Real Estate, Construction, Banks and Fertilizers. On HNX, HNX Index went up by 0.76, reaching 89.32.
 

Recommendation
Market indexes currently fluctuated above the 715 supporting level with the bright points coming from liquidity and market breadth. However, this period is the time of lacking of macroeconomics information supporting, along with that news of the President election in France or the possibility of rasing the interest rate of FED could bring the complex impact to the market. Thus, investors should be cautious. Moreover, the holiday has come, making several investors liquidate their portfolio, creating the negative effect in short term. Investors should concentrate on stocks reaching the positive performance but not recovering so much in the trading session today.