20170822_BSC_Vietnam Daily Review_EN_Red cover

Highlights

At the end of today session, the market was dyed in red. Right at the opening session, VN-Index had not once passed the previous closing point level, trading in a small downtrend momentum before decreasing significantly in the afternoon session, by 7.53 points. Contrast to yesterday session, SAB his the main factor causing the market to fall (-2.15 points), following by banking stocks such as VCB (-0,58 point), BID (-0,54 point), CTG (-0,36 point) and  BVH (-0,26 point). On the other hand, some large trading value stocks had limited the market downside momentum but they did not contribute significantly including: ROS (+ 0.09 point), HPG (+0.07 point), BHN (+0.05 point). Moving in the opposite direction to the market, Steel stocks attracted a significant amount of cash flow,  following by some Real-estate stocks (FLC, HBC), Banking stock (VPB) while market cash flow was being divested from all other sectors. Market liquidity decreased sharply in comparison to previous session with a total matching value of VND 2,649.6 billion. Market fluctuation margin extended significantly in comparison to the previous session with the difference extending to 8.49 points. Market breadth moved negatively in comparison to yesterday session with downside stocks dominating the market (172 upside stocks/ 94 downside stocks). At the end of today session, VN-Index decreased sharply by 7.53 points (-0.98%), and closed at 761.26 points level, HNX-Index also decreased by 0.26 point (-0.26%) down to 100.87 point.


Market outlook
The trading session today observed a sharp decline in index due to weak cash flow. The amplitude of fluctuation on today trading session increased to 8.49 points and there were times when the VN-Index fell to the support level of 760 points. However, thanks to some small recoveries at the end of the session, the index closed above this level. Although the index fell sharply in today trading session, the trading volume was significantly lower than last session level indicating that the selling pressure had somewhat weakened. In the upcoming sessions, the VN-Index may recover slightly, testing the resistance of 765 points and fluctuates in the range of 760-770 points if it receives support from the VN30 stocks. Investors need to observant of leading stocks’ performance to gain more insight on the market trend and may increase the proportion of stocks that have been adjusted down to attractive prices.