20170523_BSC_Vietnam Daily Review_VN_Return to 740 points

Highlight
Following upward trend from the previous session, the market continued to rise above and fluctuate around the reference level until the mid-afternoon session, however, due to selling pressure of investors took profit from short-term gains from the strong increasing stocks such as VCB (-0.37 points), MBB (-0.4 points), GAS (-0.46 points), CTG (-0.63 points) pushed the market index below the reference level. There are a few stocks holding back the market's downward trend such as SAB (+0.82 points), VNM (+0.51 points), and MWG (+0.36 points). On the other hand, the main contributor to the market's decline was ROS (-1.39 points) and the banking sector soared yesterday. Cash flowed into the retail and food sector with three noteworthy stocks, VNM, SAB and MWG. In contrast, the rubber and seafood sector continued to decline since the previous session. In addition, the diversification continued in real estate stocks, HBC and LDG hit the ceiling price, but DXG, CEE were in the red. Market breadth was negative with losers outnumbering gainers (110 tickers increased / 153 tickers decreased). Market liquidity decreased sharply compared to yesterday with the trading value of VND 4.433 billion per session. The market's volatility was narrower than yesterday's levels at 5.9 points. At the end of today trading session, VN-Index decreased 3.17 points (-0.43%) to 740.93 points; The HNX-Index dropped 0.82 points (-0.88%) to 91.9 points level.
 

Market outlook
After a strong rally yesterday, the market is in a correction phase. The market index returned to the support level of 740 points. Market liquidity decreased, market volatility narrowed and market breadth turned negative showed a cautious psychology of investors after yesterday's excitement. BSC expects the market to continue testing the support level of 740 points and fluctuating around this level in the next trading session. It is recommended that investors reduce equity allocation in the portfolio and buy good fundamental stocks at more reasonable prices in the correction phases when the market returns to test the support area of 740 points or lower