20170815_BSC_Vietnam Daily Review_EN_Market turnaround

Highlights
Different from expectation of upward trend through the last trading session, the market corrected suddenly and closed at the level of 771.06 points. The fluctuation amplitude of today trading session was 6.74 points, higher than the last one. The main stock group lowered market index including GCC (-0.69 points), VNM (-0.63 points), BID (-0.61 points), VCB (-0.45 points), VIC (- 0.29 points). In the other direction, group supported market index including PLX (+0.13 points), NVL (+0.11 points), ROS (+0.09 points), MWG (+0.09 points), GMD (+0.05 points). Market cash flow today weakened in beverages sector, banking sector, and utilities sector belonging to VN30-Index such as SAB, VNM, BID, VCB, CTG, and GAS. Today market breadth returned to the negative status with the loser outnumbered the gainer (163 losers/ 107 gainers). Market liquidity continued to be weakened with a total transaction value of VND 2,704 billion. After today trading session, VN-Index decreased by 5.11 points, closed at 771.06 points; HNX-Index also downed 0.2 points to 101.3 points.

Market outlook
The correction of VN-Index today derived from selling pressure of VN30’s large-cap stocks. This was implied by a decrease of 5.11 points of VN-Index along with VN30-Index’s decline of 5.32 points and weak market liquidity. BSC believes that after the decline of VN30-Index today, the market in upcoming session would test the support level of 770 points and fluctuate in the range 770-775 points. Hence, investors should take advantage of that correction movement to invest in large-cap stocks at an appropriate discounted price.