20170803_BSC_Vietnam Daily Review_EN_Testing the level of 790 points

Highlight

The market has traded in green for the whole session today. Right at the opening, the market rose sharply, then traded positively and reached over 790 points in the morning session. At the beginning of the afternoon session, the market index suddenly fell and lost points continuously, mainly due to the corrections in SBT and some stocks of Banking sector. When market index was down to the reference level, the supports existed and helped market to close with the increase of 29%. The key stocks which made the market gained were VNM (+0.75 points), BID (+0.5 points), EIB (+0.25 points), VCB (+0.23 points) and FPT (+ 0.12 points). In the opposite direction, the stocks which hindered the rising momentum were BVH (-0.17 points), SBT (-0.14 points), STB (-0.14 points), SAB (-0.08 points) and DHG (-0.07 point). The market cash flow focused on Hydropower, Sugarcane but was weaken in Real estate and differentiation in the Banking sector. Market breadth changed to positive as number of gainers overwhelmed that of losers (151 gainers/121 losers). The trading range was low with the gap of 4.63 points between the peak and the bottom of VN-Index. The market liquidity slightly increased compared to yesterday as the transaction value reached VND 3,708 billion. Sum up today session, VN-Index gained 2.26 points to close at 788.49 points; HNX-Index also increased by 0.46 points, up to 101.44.

Market outlook

Today's market was generally positive with market accessing and sometimes exceeding the resistance of 790 points. Although the demand was not strong enough to maintain this level until the close but still kept the market index above the reference level. On the other hand, the index only retained the level of 790 points in a fairly short time and lost points early in the afternoon season, showing the cash flow was quite cautious in this area. Market liquidity continued to be quite good and market breadth was positive. The market may trade around 785-788 points and continue to test the resistance of 790 points in the next few sessions. Investors are advised to be cautious in buying stocks, taking advantage of the opportunity to position stocks when the market surpasses short-term resistance.