20170525_BSC_Vietnam Daily Review_EN_Sideways Trend

Highlight

Continuing the upward trend of the previous session, the market rallied at the beginning of the session and fluctuated above the reference level for most of the trading session. However, mid afternoon session strong selling pressure from Bluechip stocks pushed the market index fell sharply and closed below the reference level. The losers of the market today were GAS (+0.68 points), CTD (+0.25 points) and ROS (+0.23 points). On the other hand, the main contributors to the decline were VCB (-0.8 points), VNM (-0.75 points), CTG (-0.44 points) and VIC (-0.41 points). Today's cash flow continued to pour into the petroleum, rubber and securities companies stock thanks to the positive information of these groups. The banking sector was under a strong selling pressure from foreigners, such as VCB, STB, CTG and VIB. In addition, the real estate and construction stocks also gained today with DXG, LCG, DRH. Market breadth remained positive with gainers nearly doubled the number of losers (152 tickers increased / 110 tickers decreased). Market liquidity was at the same level of the previous session with the trading value of VND 4.258 billion per session. Market breadth was narrower than yesterday, fluctuated around 5.9 points. At the end of today trading session, VN-Index decreased 0.83 points (-0.11%) to 741.91 points; The HNX-Index gained 0.50 points (+ 0.54%) to 93.47 points.
 
Market outlook

Today's correction shows that the market is still in a correction and accumulation phase. As the market index rose to the resistance of 746 points, investors immediately took short-term profit taking short from bluechip stocks which soared in the previous session Therefore the market index was pulled back to the reference level. This phenomenon shows that cash flow is not strong enough to break the resistance level 745-746 points. Market liquidity was almost unchanged, market volatility was narrowed and market breadth remained positive and tended to increase. Market cash flow, however, continued to circulate amongst sectors but exited the bluechip stocks and spread to large, medium and small cap stocks, indicating that smart cash flow was still actively seeking more attractive investment. Based these factors, BSC keeps the view that the market will continue to move in the accumulation zone of 740-745 points in the next trading session.