20170719_BSC_Vietnam Daily Review_EN_Return to the support of 770 points

Highlight
Right at the opening, the market strongly increased, returned to the support level of 770 points and traded around this level to the end of the session. The stocks which took the market out of the correction were SAB (+1.32 points), GAS (+1.30 points), VNM (+0.48 points) and BHN (+0.45 points). In contrast, the stocks hindered the rising momentum were VIC (-0.26 points), BVH (-0.18 points), VCB (-0.18 points) and FPT (-0.15 points). Market cash flow mainly focused on major supportive stocks in despite of other VN30 stocks’ downtrend. Penny stocks were covered in red as OGC, EVG, TNT and HAX hit the floor price. Market scale was nearly neutral when the number of losers was almost equal to that of gainers (145 advancers/144 decliners). Market liquidity maintained at the same level to the previous session with the trading value of VND 3,383.3 billion/session. Sum up today session, VN-Index gained 3.81 points (+ 0.50%) and closed at 771.30 points; HNX-Index also rose by 0.20 points (+ 0.21%), up to 98.81 points.

Market outlook
After 3 consecutive correction sessions, the market recovered and returned to the short-term supportive level of 770 points. However, the uptrend of the market was not sustainable due to the low existing liquidity and the weak market cash flow which mainly flowed into the main stocks group whiles the VN30-continued to decline. Marginal fluctuation of the market continued narrowing to 6.63 points. BSC expects the market to continue fluctuating around the level of 770 points in upcoming sessions and recommends investors to maintain a high cash proportion before the market returns to its stable status in terms of liquidity and definitive trend signal.