20170530_BSC_Vietnam Daily Review_EN_Correction on a large scale

Highlight

The broad downtrend maintained from the beginning of the session, most stocks on the market under selling pressure today. VNM, GAS and the banking shares were under selling pressure leading to a sharply drop in scores with the support of high liquidity. In general, the outflow of market cash is putting pressure on most sectors of the market today, in which, securities companies, petroleum, steel, fertilizers, banks’ stocks are in the big decline. It is not rare that many stocks hit the floor level, including DXG, AAA, HQC, CEE, LDG, and CTI, hit the floor level and traded with high liquidity of over 30 billion. On the other hand, there are a few large cap stocks retained their green color today, including ROS, FPT, PLX with liquidity support and contributed to the market gain. VN-index stocks were mostly in red, when there were 27/30 stocks in the basket down, negative market breadth with the number of losers overwhelmed on both floors. The market liquidity increased sharply in the afternoon session in line with the increasing selling pressure, liquidity at the end of the session was higher than yesterday's level at 4742.703 billion dong, negotiated  transactions trading value reached 494.297 billion dong, of which NVL’s transactions was 168,105 billion. The trading session ended when the VNI officially lost the support level of 740 points, closing at 738.21 points, down 8.04 points or 1.08%, respectively. The VN30 index lost support level at 720 points, VNXALLSHARE index has maintained the rising trend since the beginning of the month. On the Hanoi stock exchange, the HNX-Index retained its support level at 93 points, to close at 93.24 points, down 0.6% compared to the first trading day of the week.

Market outlook

The selling pressure on a large scale in the market today made VN-Index corrected quite deeply and lost support 740 points created in the past week. The correction trend is considered necessary after the uptrend of the VN30 index and VN30 index throughout the month. At the moment, many Blue-chip and large caps stocks are being affected by correction in the short term. The market is more volatile, as the selling pressure is occurring for most stocks on the market; it is recommended that investors reduce their stock exposure in the coming sessions if the general market recovers.