Vietnam Daily Market Recap Mar 28
Daily Market Recap 28/03/2022 64
Market commentary: VN-INDEX fell precipitously into the bearish territory
VN-INDEX was deeply in the red with a positive market breadth, after reports from media that a notable listed-corporates chairman was embroiled in legal issues, leading selling to extend across sectors. In this context, a record $319bn in share buybacks has been authorized in the U.S market this year (according to Goldman Sachs), yet the VN-INDEX began negative with an 8.1pts gap down after news of a business president embroiled in legal entanglements. Stocks linked to the aforementioned unfavorable news, as well as stocks of a similar sort, were subjected to significant selling pressure from the start of the session. Apart from that, stocks in the VN30 basket were also exposed to intense selling force, particularly Banking stocks, which had provided significant long term loans to the companies mentioned above. As a result, the market was under pressure to decline and retreat to important support levels Technical Moving Average 20 (1.483.0pts), despite the strong rally in retail stocks. Following the negative movements in the morning session, the selling force was immediately engaged at the start of the afternoon session, dragging the Index to breach the MA20 support level and reach a session low of 1,473.0pts before the reciprocal bottom-fishing force assisted in a slight rebound. Cash flow then shifted to Fertilizers, Consumer Discretionary, Oil & Gas, and Technology to counter selling force in other sectors, assisting the Index in struggling around MA20 before entering the ATC session. BID (-4.3%) was the most detrimental to the VN-INDEX, followed by VHM (-1.3%), VNM (-2.4%), DIG (-6.9%), GVR (-2.4%), and STB (-5.4%). On the other side, names such as MWG (+3.7%), FPT (+2.5%), DGC (+4.4%), DCM (+4.0%), and VGC (+3.0%) aided in the market’s reversal. At the end of the session, the VN-INDEX decreased 1.0% to 1,483.2pts, and the HNX-INDEX plumped by 1.5% to 454.9pts.
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