20170524_BSC_Vietnam Daily Review_EN_Tested the support level of 740 points

Highlight

As soon as the market opened, the market index immediately fell below the reference level and fell to the bottom level of 737.3 points. However, thanks to investors buying bottoms of stocks that fell sharply in the previous session, the market increased again and fluctuated above the reference level until the end of the session. In contrast to the previous session, the banking sector returned to the main support role of the market credited to BID (0.87 points), MBB (0.77 points), CTG (0.74 points), VCB (0.64 points) And ACB (0.99 points). In addition to this group, securities companies' shares also rebounded strongly, typically SHS stock reached to the ceiling price. On the other hand, the main drivers which held back the market were ROS (-1.39 points), PLX (-0.7 points) and SAB (-0.66 points). Today's cash flows spread to the banks, securities companies and rubber companies as the world rubber prices recovered in recent sessions. Additionally, real estate and construction stocks also increased in the afternoon session with PHC, ITC and PC1 were in the green. Market breadth returned to positive zone with gainers overwhelmed the market (141 shares gained / 126 shares decreased). Market liquidity maintained at the same level with the previous session, market matching value reached 4.545 billion per session. Market volatility slightly widened compared to yesterday, fluctuated around 6.9 points. At the end of today session, the VN-Index gained 1.81 points (+ 0.24%) to 742.74 points; HNX-Index also gained 1.02 points (+ 1.16%) to 92.97 points.
 
Market outlook

Today's trading session helped test the support level of 740 points. When the market index falls below 740, the smart cash returned to the large market cap stocks and caused the market index to rebound above the reference level. Market liquidity was almost unchanged, market volatility slightly widened and market breadth was positive again, indicating the persistence of the support level of 740 points in investors' psychology. Market cash flow between market segments shows that money is still in the market. Based on these factors, BSC expects the market to continue moving in the range of 740-745 points in the next trading session.