BSC_Daily report 12.01.2015_Foreign investor came back to buy

Selling power increased when the VN-Index approached the threshold of 580 pts. This is a strong technical resistance, so the market is likely to continue correcting in terms of index points, though there will be certain differentiation among stocks. Speculative stocks which rose high and lack of fundamentals can continue to get short-term profit taking pressure. Meanwhile, we believe that the corrections are good opportunities for mid-term investment to accumulate good fundamental & positive business results shares. We also note a positive sign in foreigners’ cash flow, especially the ETF funds. The positive changes in premium shows 02 ETFs will keep their buying in the near future. The ETFs have pushed up disbursement in Q1 for 04 recent years. The current signals are also establishing this trend.

RECOMMENDATION

On the basis of above reasons, we advise investment view as follows:

• Short-term investment: Sell at resistance and buy at corrections.

• Mid and long term: Maintain the current portfolio, increasing the proportion of stocks at corrections, especially the stock available in the ETFs’ portfolio.