20170508_BSC_Vietnam Daily Review_EN_Market differentiate

Highlights
The first trading session of the week illustrated a struggling at below the 720 support level in the morning session. The differentiation occurred not only in Largecap stocks but also stocks in the same sector. In term of index points, almost all industries had decreased points today mainly due to  Largecap stocks negative effect, while Smallcap stocks attracted short-term cash flow. In the afternoon session, the market index cannot returned to the 720 level due to supportive stocks effect such VCB, VNM and other Largecap Real-estate stocks, and at the same time, largecaps stock of the Energy sector and Hydroelectricity sector were the main supportive group of the market. The market scale was no negative when the bullish stocks was dominating the market, a large number of Real-estate Smallcap stock reached the ceiling price in the session, while HNG and HAG were deeply corrected due to negative information. At the end of the session, VN-index closed at 718.86 level, losing the supportive level of 720 level, decreasing by 1.14 points, corresponding to a decrease of 0.16% in comparison to the previous session. HNX, index also went down to 89.13 points, corresponding to a decrease of 0.65%


Recommendation
Although the short-term market cash flow remained in the market and it was mainly invested in Smallcap stocks and cause a positive market scale, however, bearish effect from Largecap stock had made the market index lose the supportive level of 720. Market liquidity is improved significantly and increased in comparison to the previous trading session, differentiated to all stocks in different sectors. The market also had strong differentiation with stock categorized in capitalization scale, while Largecap stocks lower the market trend adjustment, majority of Smallcap stocks rallied and attracted short-term cash flow. In general, market index is creating a new level around the 720 level, after the recover session from the 710 bottom level. VN-Index is receiving supportive from short-term MA(15) and mid-term MA(45). In the coming session, the market may continue fluctuating around the 720 level, creating a new stable level; short-term cash flow can continued spreading into Smallcap stocks that had low price and growing room, and not receive the consensus of the market supportive stocks.