20170824_BSC_Vietnam Daily Review_ Rebound momentum continued

Highlight
Continuing the upward momentum yesterday, right from the opening, VN-Index has continuously climbed to new high levels. Although in the middle of the morning, the index slightly corrected to 764.64 points but immediately came back, climbed consistently to the resistance level of 770 points. In the afternoon session, the cash flow was positive but the corrections at the end of the trading session caused the index fluctuated around the level of 770 points. The stock group helped index gaining points included banking stocks such as CTG (+0.95 points), MBB (+0.54 points) and BID (+0.54 points), following by oil and gas stocks such as PLX (+0.46 points) and GAS (+0.30 points). In contrast, stocks that had a negative impact on the index were HT1 (-0.18 points), CII (-0.15 points), QCG (-0.12 points), VNM (-0.11 points), BVH (-0.11 points). Today market cash flow was positive, focusing on the banking sector (especially ACB on HNX), real estate (FLC today accounts for nearly 18% of market cash flow), oil and gas, and sugarcane. Market liquidity improved after the long period of weakness, with the transaction value approximated VND 3,163 billion. The amplitude of fluctuation for today session was similar to yesterday session at 7.01 points. Market breadth was in positive status with gainers outnumbered losers (145 gainers/ 126 losers). Closed today session, VN-Index increased 3.79 points (0.49%) to 769.77 points; HNX-Index also gained 1 point (0.99%), closed at 102.28 points.


Market outlook
Today's session witnessed the return of cash flow. Positive cash flow spread to almost all sectors, especially in large capitalization and leading sectors such as banks and real estate. In this session, VN-Index once again successfully tested the resistance at 765 points and being approached psychological resistance at 775-780 points. The market recovered for the second consecutive session but it may be just a short-term recovery due to cash flow improvement. Therefore, investors should be more cautious about the decision to increase the stock proportion at this stage, but the potential profits still exists for some good fundamental stocks.