20170522_BSC_Vietnam Daily Review_EN_Banking industry increased sharply

Highlight
The first trading session of the week was very exciting as most of the large cap stocks, which play a role as the market supports, suddenly surged. In this morning session, PLX and VNM shares continued to attract market cash flows, mostly from foreign investors. Banks' shares broke out dramatically in term of value with the strong support from sharp increase in liquidity, in which BIDs (BID (+ 7%), CTG (+ 5.5%), EIB (+3.2%), VCB , ACB (+ 1.6%), MBB (+ 3.1%), SHB (+ 2.9%), STB (+ 2.4%). Today, the MSCI Frontier 100 index increased the portfolio allocation of Vietnam's stocks from 8.01% to 12.63%, and announced the addition of 9 new shares to the basket in this rebalancing round, these stocks are attracting strong cash flow from foreign investors. At the moment, almost all market sectors are gaining momentum, in addition to surging banking stocks, the petroleum shares also is recovering strongly with support from oil price's information. Additionally, some sectors such as steel, rubber, transportation, warehousing, seaports and construction materials are also gaining momentum. On the other hand, the real estate stocks continue to diverse and construction stocks also have large-scale adjustments. Market liquidity continued to grow in today's trading session with the market matching order's value reached VND5,151.39 billion and negotiated transaction' value is worth VND695.49 billion, of which AAA share have a large transaction of VND245 billion. Market breadth maintained a positive view as the gainers still outperformed the losers, specifically, 251 shares gained over 216 shares lose on both exchanges. Closing at the end of the session, although there was some adjustment of the momentum of the supporting and leading stocks, the market still gained more than 10 points compared to last week's closing. The supporting and the banking stocks contributed more than 9 points to the market, the VNI closed at 744.10 points and continued to break out the short-term resistance at 740 points. On the Hanoi Stock Exchange, the HNX-Index increased slightly from the previous one, reached 92.71 points, or 0.58% gain, respectively.

Market outlook
The market floating cash continued to increase strongly in the first trading session of the week and was pouring into the large cap stocks, VN30 stocks and the market leading sector were the main reason for the market's strong rebound and excitement in the first trading session of the week. Except PLX and VNM there are many stocks that are attracting foreign cash flow. The banking sector attracted nearly 1,000 billion value traded today, accounting for one fifth of the total trading value. Most of other sectors' stocks also received support from most of market's cash flow. The market recorded a boom in terms of both score, liquidity, and the even spread through the market, with positive comeback from foreign investors. In the next few sessions, if the liquidity is still in the uptrend, the VN-index will continue to move toward the short-term resistance levels of 750-760, large caps and leading sector stocks will continue to receive cash flow from the market.