20170608_BSC_Vietnam Daily Review_EN_Fell below the 750 level

Highlight
In the morning session, the market increased significantly thanks to Banking stocks such as VCB (+0.38 point), EIB (+0.22 point), and then fluctuated above the previous closing index point until near the end of the afternoon session. The market underwent a strong selling pressure at the end of the afternoon session and fell below the previous closing index point. The stocks that limited the bearish momentum of the market in today trading session were PLX PLX (+0.69 point), VCB (+0.62 point), DHG (+0.38 point) and VIC (+0.27 point). On the other hand, the main factors that caused a strong correction movement in the market were ROS (-1.08 point), GAS (-0.39 point), NVL (-0.32 point). ROS continued being sold significantly with the residual selling value of 500 thousand stocks. The pair HAG and HNG had a strong selling period, however, thanks to strong supportive force, HAG was able to maintain its previous closing price. The market cash flow focused on Pharmaceutical sector with dynamic and positive trading activities of DHG, DHT and DMC. In contrast, Steel sector and Marine sector decreased significantly during the entire trading session. The market scale returned to a near neutral state with the bullish stocks almost equal the bearish stocks (127 bullish stocks/ 135 bearish stocks). Market liquidity decreased significantly in comparison to the previous trading session. At the end of today trading, session, VN-Index decreased by 0.41 point (-0.05%) and closed at the 749.72 point level; HNX-Index increased by 0.11 point(+0.11%) up to the 97.36 level.



Recommendation
VN-Index has fallen below the short-term supportive level of 750 point due to weak supportive force at the end of the session and ROS falling to its ceiling price level in two consecutive sessions which significantly affected the market index. However, the market scale returned to the near neutral state, lower market liquidity and narrower fluctuation margin illustrated that the market cash flow was in the market. The cash flow spread into stocks of different industries and capitalization categories. BSC expected the market to rebound back to the 750 point level at the next trading session on Monday and continue fluctuating above this short-term supportive level.