Market comment – July 21

Markets traded above Monday’s close yesterday but failed to make further headway and the low volumes suggest that the risk is still to the downside for now.

We saw some buying both from retailers and foreigners throughout the day but the size was quite small and the lower volumes as ever speak more than the daily price movement. Bid and offers were both well above 10 million shares which is the threshold for any sustained rally in our opinion. The trading range yesterday was quite narrow and we closed off the highs although a late run was a positive.

Blue chips were largely mixed but none were big gainers on the day. Market breadth was wider than Monday however. Some key financial stocks such as BVH, CTG and SSI did continue to fall fairly sharply although VCB, STB and ACB registered some small gains. The market seems concerned still about the likely decline in banking sector liquidity for the 2-H.

Nothing about yesterday seems that convincing as a rallying point for sentiment. While the 412-415 level on the VN-Index does seem to offer support again yesterday the momentum behind the movement was shallow and half-hearted. And to convince us that even a short term rally was in place the market would have to gain a lot of ground today. And while today’s direction is uncertain, yesterday would seem to us to be simply an up day in a down market.

Fiachra Mac Cana,

head of research at the Ho Chi Minh City Securities Corp.

                                                                                                                     thanhnien

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