20170313_BSC_Vietnam Daily Review_EN_VN-Index returned to the 710 level

Highlights

Continuing from the correction trend of last week, the market index was in red color today. In the morning session, the lowest point of the VN-index was 707.53 points, decreased by 5 points in comparison to previous session. Blue Chips stocks such as SAB, GAS, VNM and Banking stocks went down during today session, and that in turn, caused VN-index to decrease.  The pair HAG and HNG, the center of attention form last week, cannot withstand the correction pressure and turned red today. However, the cash flow is immediately invested into real estate stock such as HBC, CTD, DIG, ROS, NVL and Pharmaceutical stocks such as DHG, DMC, which helps the market rebound back to the 710 levels. The cash flow is distributed into safe investment group such as real estate and chemistry industries. The strongest supporter of the market is NVL, contributing 1.13 to VN-index. Market liquidity decreased strongly and went down to VND 2.823 thousand billion due to negative effects of selling pressure incorporated with expectation of FED increasing the interest rate in the upcoming summit. Notably, VNM has a negotiated trading deal of 1.5 million stocks, corresponding to VND 195 billion. At the end of today session, VN-index decreased by 2.04 point and went down to 710.17 level in comparison to previous session; HNX-index decreased by 1.03 point (1.17%), down to 87.11 point and Upcom- Index decreased by 0.07 point (0.13%), down to 57.6 level.

Market commentaries
The first trading day of the week began with three indices closing below reference price. Investors’ conservativeness had increased significantly as ETFs had begun their trading activities including selling a large volume of stocks from their portfolios and the rising probability of FED increasing the interest rate. At the second half of the morning trading session, VN-Index downward trend narrowed thanks to NVL (closed at ceiling price) and ROS as these two have been picked to be included in FTSE VNM ETF and VanEck VNM ETF. General investors can increase their holding in fundamentally safe stock and in accordance to their business plans for 2017 disclosed in shareholders meeting happening in March. However, margin trading should be limited and investors should keep a certain amount of cash in their account as buffer for possible loss.