20170710_BSC_Vietnam Daily Review_EN_Area-wide sharp declines

Highlights
Following in first session of this week is the strong correction of the market, high selling pressures happened in many stocks, making market loses 9.12 points in this session. Most of large-cap stocks were affected negatively, 28 out of 30 stocks in VN30 lost points, market scale was totally negative while the number of falling stocks constitute the majority. The weakening of the market was by some large-cap stocks such as VNM, VIC, PLX, GAS, MSN and some major banking stocks which contributed more than 4.24 decreasing points to the index. Besides, simultaneous declining of most sectors stocks made VN-index continued to lose the short-term support of 770 points today, closing at 766.56 points, downside 1.18% compared to last week's closing session. In Hanoi exchange, HNX-Index kept the support of 100 points, closing at 100.37 points, downside 1.19 points compared to last session, the declining was mainly generated from the correction of large-cap stocks such as ACB, VCG and NVB. Market liquidity of both HOSE and HNX were both high, respectively VND 4028 billion and VND 904 billion.

Recommendations
The market continued to maintain a strong and area-wide correction in the first trading session of the week, following the decline session last week, losing 17.25 points in just two trading sessions. This deep correction was triggered by the rapid rise of the market, largely influenced by a number of major supportive stocks, while market liquidity weakened sharply during the week. The market index officially lost short-term support level of 770 and is receiving support from the moving average (20). Regarding to short-term forecasts, corrections period may still take place in the coming sessions, but the level of declines may slow down and may bring the benchmark index to test the next support level of 700 points. There is a cash outflow from the market after a long time kept in large capital stocks and other leading industry stock groups such as Banking, Real Estate and Construction. Investors can also disburse basic stocks at attractive discount rates.