20170717_BSC_Vietnam Daily Review_EN_The red tide

Highlight
The market opened and traded around the reference threshold until middle of morning session. Right after that, strong selling pressure in large-cap stocks such as BVH, CTG, DPM, and FPT forced the market dropped significantly. This decline lasted to the end of the afternoon session, causing the VN-Index to fall to below the short-term support of 770 points. Stocks that made market to decrease were VNM (-1.51 points), GAS (-0.87 points), CTG (-0.66 points) and VCB (-0.65 points). In the opposite direction, the two major stocks that hindered the declining momentum of the market were SAB (+1.76 points) and BHN (+0.44 points). Market cash flow mainly went to small-cap stocks and penny stocks such as DPS, OGC, HAR, TNT.... On the market, most of the stocks of other groups, classified by market capitalization, declined regardless of the sector. The banking sector continued to decline as ACB, CTG, BID, and VCB were all in red. Market scale was negative when number of losers was two times that of gainers (85 advancers/194 decliners). Market liquidity increased sharply compared to the previous session, with trading value of VND 3,948.2 billion/session. Sum up today session, VN-Index decreased by 8.69 points (-1.12%) closed at 768.91 points; HNX-Index also lost 1.79 points (-1.78%), down to 98.64 points.

Market outlook
Following a slight correction last week, the market corrected strongly in the first trading session of the week. Market breadth remains negative, suggesting that the pervasive cash inflows continues to diminish. Amplitude fluctuation widened with the difference between the peak and bottom price is 11.9 points. In addition, market liquidity also increased sharply mainly due to the selling activities from investors. VN-30 was sold out strongly today possibly due to the restructuring of the portfolio of funds in the near future. BSC expects the market to fluctuate in the range  765-770 points in the upcoming trading sessions as the sentimental effect of today correction session eroded.