Vietnam Daily Market Recap Jan 11

Market Commentary: The VN-INDEX fell 11.4pts to 1,492pts, breaching the 1,500.0pts support level

The VN-INDEX declined 11.4pts, creating negative sentiment for the second consecutive session as selling pressure increased at the end of the afternoon session, despite the National Assembly officially approved the economic stimulus package worth nearly VND350,000bn. In contrast to yesterday’s sharp decline, the VN-INDEX began with a small gap up, but the force of selling quickly accelerated, leading the market sometimes to lose up to 10.0pts. However, the sharp decline instantly sparked the bottom-fishing cash flow, leading the market to return to the reference level and fluctuate there until the morning session ended. During the afternoon session, the market gained marginally to its highest level of the day 1,512.0pts, aided by several real estates as well as Banking, Oil & Gas sectors, such as BCM (+6.9%), DIG (+6.9%), GAS (+1.3%), BID (+1.4%), and STB (+2.7%). After reaching the intraday high, the market fell sharply and pierced the strong support level of 1,500pts before retracing its steps to the next strong support level at MA20 (1,490.0pts). At the MA20, bottom-fishing cash flow continued to activate, assisting the VN-INDEX in testing the 1,500.0pts threshold but failing owing to an overwhelming selling push from the banking, real estate, consumer, and VNINGROUP – related stocks. MSN (-5.3%), VHM (-2.1%), VIC (-1.3%), GVR (-2.4%), SSB (-4.2%), and VRE (-2.3%) all contributed to the market’s decline. At the end of the session, the VN-INDEX fell 0.8% to 1,492.3pts, hovering near the strong support level MA20, while the HNX-INDEX fell marginally 0.3% to 481.6pts.

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