20170830_BSC_Vietnam Daily Review_EN_Rebounding

Highlight
Contrary to yesterday, VN-Index maintained its upward momentum on the reference for most of the trading time. Although in the early morning, VN-index adjusted slightly but then the selling pressure leveled off, along with positive cash flow on some large capitalizations helped increase the score continuously until late afternoon. With an increase of 6.8%, VIC was the most active stock in the index (+2.82 points), followed by MSN (+0.6 points), ROS (+0.46 points), MWG (+0.24 points) and VNM (+0.23 points). In contrast, the stocks that had a negative impact on the index included PLX (-0.36 points), BID (-0.32 points), CTG (-0.18 points), STB (-0.08 points) and BHN (-0.06 points). Today's cash flow tended to spread into real estate stocks (mutation at VIC) and steel sector while still drawing strongly in speculative stocks and did not show any improvement in banking stocks. Today market liquidity decreased sharply compared to the previous session with the matching value of nearly VND 3,250 billion. The daily trading fluctuation range was 4.8 points. Market breadth was fairly balanced with 127 stocks upward / 130 stocks downward. At the end of today trading session, VN-Index gained 4.62 points (0.6%), closing at 778.65 points, while HNX-Index decreased by 0.18 points (0.17 %), down to 103.34 points.
 

Market outlook
After the yesterday short-term profit-acquisition session, the market had a significant rebound but with a weaker liquidity in the recent 3 average days session. The market observed the excitement at some real estate sector and the VN30 but selling pressure is still occurring, especially in the speculative stocks and banking stocks. Today's index has surpassed the psychological resistance level of 775 points and may rise to the resistance level of 785 points, but the liquidity had not improved along with the trend of cash flow focusing on individual stocks which would cause this momentum unsustainable. Investors, depending on their risk aversion strategy, may utilize the market fluctuations to raise their fundamental stocks that indicating positive outlook of business results for a couple of months until year ended.