20170721_BSC_Vietnam Daily Review_EN_Increasing Selling Pressure

Highlight

The market opened with a slight fluctuation above the reference level until middle of morning session. Selling pressure gradually appeared and caused the market to drop sharply from the middle of the afternoon, making VN-Index fall nearly to short-term support of 760 points. The fluctuating range was quite large as the gap between the peak point and bottom point was 8.57 points. The major stocks which made market index decrease were GAS (-1.24 points), VCB (-0.53 points), CTG (-0.49 points), BID (-0.39 points) and MWG (-0.35 points). On the opposite direction, the key stocks which hindered the falling momentum were SAB (+0.32 points), NVL (+15 points), QCG (+0.15 points), SBT (+0.1 points) and ROS (+0.08 points). Market cashflow withdrawn from Petroleum, especially GAS, Banking stocks along with small-cap stock and penny stocks. Market scale was slightly more negative than yesterday session (109 advancers/ 192 losers). Market liquidity was improved as the trading value reached VND 3,269.1 billion. Sum up today session, VN-Index lost 6.55 points and closed at 761.86 points; HNX-Index decreased by 0.69 points, down to 97.96 points.
 

Market outlook

The decrease of Banking and Petroleum sector, especially GAS, along with Smallcaps or penny stocks occurred due to investors’ conservative approach when expectation had died down along with rising saving cash trend in order to utilize the new movement in the market.   According to BSC’s perspective, we believe that these corrections were not extremely negative and might continue to occur. At the same time with the restructuring portfolio and raising the cash proportion of it, market liquidity is certain to be maintained at the current rate and VN-Index is sure to fluctuate above the supportive level of 760points in the upcoming session.