20170605_BSC_Vietnam Daily Review_EN_Return to support level of 740

Highlight
In the first trading session of the week, the liquidity has improved, the market recovered to the support level of 740 points, mainly thanks to the contribution from banking stocks and few individual support stocks such as VNM, PLX, NVL. Market cash flow is divided among different sectors and even among stocks in the same industry. If the groups of Banks, Minerals, Fertilizers, Rubber, and Construction Materials had signs to recover, the Construction, Real Estate and Plastic groups were still affected by correction and divergent. There were no lack of real estate stocks that had market factors in the process of deep dropping or falling to the floor price, while the HAG and HAG also closed at the floor price with the selling pressure from the foreigners when HAG received information of excluding from the FTSE Vietnam ETF. Market breadth maintained a positive momentum as the number of gainers outweighed number of losers, liquidity improved only at the end of the session, with a slight increase in matching order value of VND 3579.4 billion, negotiated transaction's value reached VND 1515,017 billion, of which VIC reached VND 700.9 billion, NVL VND 158.24 billion, AMD VND 110.52 billion. At the market close, VN-Index increased 4.68 points at 743.49 points, up 0.63% compared to the same session last week. On HNX, HNX-Index approached the resistance level of 95 points with 94.93 points, respectively increased 0.6%.

Market outlook
The market liquidity improved slightly in the first trading session of the week, but still a bit modest compared to the market's excitement two weeks ago, and tended to promote negotiated transactions.  Simultaneously recovery came from the Banking and support stocks such as VNM, PLX, however, cash flow still inclined to exit the market, especially in the real estate group which had attracted cash throughout a period. In terms of the index, thanks to positive impact from the support stocks, the VN-Index has a chance to return to the cumulative level of 740 points today, the short-term MA (15) is still supporting market indexes' movement. On top of that, the liquidity of the market need to continue to strengthen in the coming days and we still need a widespread recovery from the large caps. The VN-Index has the chance to break out of the short-term resistance level of 750 points if it receives support from a number of individual support stocks, but the more importantly from the improvement and distribution of the market cash flow.​