20170627_BSC_Vietnam Daily Review_EN_A strong correction session

Highlights
In the morning session, the market started trading superficially and immediately decreased below the previous closing point level; there are times that the market rebounded to this level but the supportive force was not strong enough to protect this level. Strong selling pressure occurring at Largecap stocks that had increased in the previous session affected negatively on the market index and caused the index point to go below the previous closing point level. In the afternoon session, the bearish continued until today session end and touched the bottom level of 767.19 point. The stocks that caused the decrease of VN-Index during today trading session were PLX (-1.11 point), BID (-0.34 point), CTG (-0.31 point), and VCB (-0.30 point). On HNX-Index, ACB (-0.24 point), VCS(-0.24 point) and VCG (-0.32 point) affected significantly on HNX-Index. In contrast, stocks that limited the bearish momentum of the market were GAS (+0.26 point), DHG (+0.13 point), STB (+0.09 point), ROS (+0.07 point). The market cash flow was divested from bullish stocks in previous session such as PLX, MSN, MWG and VIC. In the banking sector, the majority stocks including BID, VCB, CTG and ACB decreased, excluding only STB when news of LienvietPostBank was available for public. Moreover, regarding to penny stocks, OCG and ITA continued to maintain its respective bullish momentum while FLC was decreasing. On a comprehensive perspective, strong selling pressure occurred at all different sectors of the market. The market changed to a negative state with the bearish stocks dominated the market (92 bullish stocks/170 bearish stocks). Market liquidity was maintained at the same rate as the previous session, its matching value reached VND 3,747.1 billion/session. At the end of today session, VN-Index decreased by 5.01 point (-0.65%) and closed at the 767.51 level; HNX-Index decreased by 0.71 point (-0.72%), down to the 98.02 level.

Market Outlook
After two consecutive bullish sessions, the market strongly corrected due to short-term profit cut activity at all sectors in today session. In which, Banking stocks and PLX were the main factor that caused the market correction The market scale returned to a negative scale indicated that an increase in the portfolio’s cash proportion. Market liquidity was maintained at the same rate as the previous session. Market fluctuation margin widen with the difference between the highest and lowest price to be 6.21 points. The purpose of this profit cut activities may also illustrate that investors are restructuring their portfolio by raising proportion of high growth potential stocks in the upcoming Q2 businesses’ report period.