20200512_BSC_Vietnam Daily Review_EN_Slowed rebound trend, State Bank cut policy rates _TA_BVH_Postive signal

Market outlook

In contrast to the last 4 gaining sessions, the market opened with a strong decline due to the spread of short-term profit-taking pressure in the early morning session. But buying force increased gradually over time, causing the market to reverse and ended the session with a rise of nearly 7 points. Foreign investors turned to be net buyer, focusing mainly on VNM stock. The market cash flow still spreads into many sectors but increased sharply in the Textile sector (TNG, MSH, TCM and VGT all hit the ceiling price) due to the new that EVFTA Agreement will be approved by the National Assembly on May 20, 2020. Liquidity was at a high level, trading amplitude narrowed and market breadth was positive, indicating that trading activity was quite busy. The narrowed uptrend along with high liquidity level after 5 consecutive gaining sessions signaled the rising number of profit-taking activities. VN-Index is likely to shortly consolidated in the price range of 800-850 points in the coming sessions. In addition, after the trading hours, the State Bank has just announced a series of decrees to cut interest rates which started taking effect on May 13, 2020. The impact of these decrees will slightly improve the profitability of banking sector.

Highlights

• VN-Index +6.99 points, closed at 835.32. HNX-Index +0.21 points, closed at 111.78.

• Pulling up the index: VNM (+2.67); VCB (+1.17; PLX (+0.46); CTG (+0.43); TCB (+0.40).

• Pulling the index down: VIC (-0.48); MSN (-0.37); NVL (-0.36); HPG (-0.24); MWG (-0.22).

• The matched value of VN-Index reached 5,041 billion dong, up + 12.4% compared to the previous session.

• The amplitude is 16.29 points, narrowing compared to the previous session. The market saw 202 gainers, 73 unchange and 106 losers.

• Foreign net buying value: VND 94.61 billion on HOSE, including VNM (VND 154.96 billion), VCB (VND 65.55 billion) and VPB (VND 58.34 billion). Foreign investors were net sellers on the HNX with a value of VND -3.56 billion.