20170518_BSC_Vietnam Daily Review_EN_Wide scale bearish

Highlights
The market index open lower than the supportive level in the morning session, main pressure originating from two Largecap stocks which are VNM and ROS. However, the market index immediately recovered the rebound momentum when Banking stocks recovered, along with the support of PLX and SAB. Market liquidity in the morning session decreased although the general market index and VN30 index increased. Market scale was negative when the bearish stock dominated the market, on both market, there are 170 bullish stocks and 307 bearish stocks. Strong differentiation continued occurring in Real-estate sectors. While SCR, DRH, FLC, HAG, TDH, NLG, DLG… was confronting strong selling pressure in the session, HBC, HQC, LDG and DXG was rebounding. Finance-Banking sector, Securities sector, Transportation sector, Rubber sector and Pharmaceutical sector is attracting the market cash flow today, on the other hand, most market sector was in the general correction trend. At the end of the session, VN-Index corrected below the previous closing price and closed at the 726.99 level, corresponding to a decrease of 0.03 % in comparison to the previous trading session. Although the market liquidity started lower than amount of the previous session, it increased significantly by the end of today session; trading value was VND 4, 5551.43 billion, put through trading was VND 530.56 billion, in which VNM put through amount was VND 91.38 billion.


Recommendation
The market is confronting with the selling pressure from the stocks that attracted short-term cash flow, continued from consecutive interlace of selling and buying session above the 725 supportive level which is enhancing the market trading sentiment, however, the market fluctuation is growing with the market liquidity maintained at a high and stable rate. The attempt to break through the 700 supportive level of VN30 was not successful because of strong selling pressure at the end of the session. The market cash flow is maintained but the spreading possibility is lower and mainly invested into Largecap stocks. In the upcoming session, the general market may fluctuate before the strong selling pressure of hot bullish stocks, and that in turn, make the market index to test below the supportive level of 725 point.