20170503_BSC_Vietnam Daily Review_EN_Banking stock bullish

Highlights
Combing back form the holiday, the market continue maintaining its positive sentiment and the bullish trend at the end of the week. The market in the morning session tested the supportive level of 715 point, corresponding to the supportive level corresponding to the supportive level estimated by short term moving average indicator (15), mainly originated from bearish of 2 large cap stocks such as VIC, ROS, however, the supportive force of the market came back to the market in the form of banking stocks which made the index point rebound back to the previous closing price, maintaining a positive  point until the end of the trading session. Although the market scale had not been positive when the bearish stocks were the market majority, the market cash flow had become more concentrated in Midcap stocks and small cap stocks.  Almost all market group is in the bullish trend, aside from the main supportive factor-banking, stocks belong to Sugar cane industry, Plastic Industry, Fertilizer Industry, Hydroelectricity Industry also maintained the bullish trend. On the other hand, gas and oil stocks was within a deep correction period influenced by unfavorable news, Real-estate stocks were in the process of distribution in the market. At the end of the session, the market index moved close the resistance level of 720 point, which was 719.54 point, corresponding to an increase of 1.81 point. HNX-Index also recovered above the previous closing price by the end of the session; UPCOM-Index corrected slightly below its previous closing price.

Recommendation
The increasing movement of today market was led by the banking stocks, large caps stocks did not affect significantly on the market index. Market liquidity increased by both the executed trading and negotiated trading. Although, the market scale was not clearly positive when the bearish stocks on the market was dominating the market, however, the cash flow of the market was invested into Midcap stocks, leading stocks, and positively distributed into Smallcap stocks. The distribution was occurring between different industries group, along with no united rebound movement from Largecap stock, and thus, the market has not escaped the possibility of reversing market movement to correction. The market index is standing before the resistance level of 720, the main indicator to determine whether the market would rebound and market scale would be positive. BSC recommended investors to invest only when the market trend is clear, short-term trading activities may contain high degree of risk.