20170808_BSC_Vietnam Daily Review_EN_Continuing correction trend

Highlight

The market today observed strong fluctuations, right in the morning session, market has two strong rallies over the resistance level of 796.09 points yesterday, reaching peak of 796.62 points, the highest this year; however, then adjusted strongly and closed at 791.57 points. The amplitude of fluctuation was 6.78 points, lower than yesterday trading session. The main stocks group lowered market index included VNM (-0.78 points), CTG (-0.35 points), MBB (-0.22 points), MWG (-0.21 points), and STB (-0.2 points). In the opposite direction, main stocks group supported market included SAB (+0.81 points), VCB (+0.41 points), PLX (+0.26 points), GAS (+0.25 points) and VIC (+0.25 point). Today market cash flow returned to the steel manufacturing, sugarcane, banking sectors and differentiated in oil & gas. Market breadth remained negative status with losers overwhelmed gainers (189 losers/121 gainers). Market cash flow was higher than yesterday with transaction value of VND 3,748 billion. After today trading session, VN Index decreased by 1.41 points, closed at 791.57 points, HNX-Index also decreased 0.12 points, lowered to 102.28 points.

Market outlook

During today session, market index had not approached the short-term peak level of 800 points. For tomorrow session, selling pressure are certain to be maintained in most sectors and that in turn, caused the market index to correct in the upcoming sessions. The index will also test the 790 supportive levels before approaching the short-term resistance level of 800 points. The market cash flow continued having differentiation among different sectors. BSC recommend investors to observe the market, utilizing the market shaking movement around the supportive level in order to raise the fundamental stocks proportion in one’s portfolio at an attractive price level.