20170601_BSC_Vietnam Daily Review_EN_Weakened Liquidity

Highlight

Market liquidity continued to weaken today although the VN-Index broke out the resistance of 740 points and remained throughout the trading session. The large cap stocks that contributed to today's uptrend include VNM, VIC, MSN, VJC and SAB, although the liquidity was rather modest and focused on VNM and VJC. Large cap stocks remained diverged, VN30-Index attracted more cash flow and the majority of stocks in the basket increased today. Most of the market sectors also recovered in terms of scores; fertilizers, rubber, pharmaceuticals, technology stocks had a good performance relatively to the market. There were divergences in real estate, construction, steel industry stocks as they were going again the general trend. As mentioned, the liquidity weakened throughout the session, although the recovery occurred on a large scale, by the end of the session, the matching orders’ value reached VND3068.4 billion, the negotiated transactions’ value reached VND 527.59 billion, in which VND 206.1 billion in NVL and VND 146 billion in HSG. Today, the VN-index closed at 741.8 points, up 3.98 points or 0.54% from the previous session. On HNX, HNX-Index reached 93.99 points, slightly increased 0.08 points compared to the previous session.

Market outlook

Despite the recovery in term of scores, market liquidity is weakening visibly, reflected the prudence of market cash flow. Diverged and scarce cash flow may put the market into riskier period. The support of large cap group is not enough to help the market establish a secure platform without the improvement of liquidity. Investors are recommended to continue lowering their portfolio’s market exposure if the market has opportunities to recover, in case the risk of the market reverses if the VN-Index breaks out of the 740 point accumulation platform.