20171025_BSC_Vietnam Daily Review_EN_Strong divergence

Highlights
• Continuing the recovery momentum, Vietnam stock market continued to increase today.
• The top leaders were ROS (+1.98 points), VCB (+1.05 points), VNM (+0.85 points), MWG (+0.40 points) and CTG (+0.36 points).
• The top laggards were SAB (-0.28 points), VIC (-0.21 points), NVL (-0.16 points), HSG (-0.16 points) and DHG (- 0.11 points).
• Today, banking stocks and many key stocks advanced sharply.
• The trading value of VN-Index today reached VND 2,560 billion. The trading range for today was 7.86 points. The market was fairly active today with 142 advancers / 124 decliners.
• Ending the trading session today, VN-Index continued to increase 5.45 points, closing at 830.69 points. Along the trend, the HNX jumped 0.71 points to 107.40 points.

Market outlook
Today continues to be a bullish trading session and as the sooner afternoon came, the stronger the bull become. However, the sustainability of the market remains a big question mark since liquidity continued to taper off (to the lowest level within 2 weeks). After the strong correction, banking, securities, aviation, oil and gas stocks had increased a slightly, contributing to the increase of cash flow although not much, meanwhile the steel and fertilizer sectors pulled the index down. There is still dissension between cash flow and index today as cash flow largely circulate in small and medium speculative stocks. According to the BSC, the market's gaining points are attributed to the positive signals of large put through transactions while the trading value continues to weaken, reflecting the hesitant sentiment of investors. Investor should maintain a reasonable proportion of cash and stocks and should not open new long position when the market is not really healthy.