BSC_Daily report 28.01.2015_The VN-Index still needs some more re-test on its 580 pts support to strengthen market sentiment in the short term_PLC, KBC Updates

Echo of the previous decline continued challenging investors’ sentiment today. The VN-Index and HNX-Index has fluctuated around their 580 and 86 pts important supports, and finally succeeded when closing above these thresholds. This movement was fueled significantly from the strong rally of banking stocks. The central bank today has issued 02 directives relating to operating orientation of bad debts settlement and reducing level of interest rates for this year. Other macro information such as industrial production, retail sales, trade and FDI have been published and remained quite positive. In general, we believe that macro stability will continue providing solid foundation for stock market‘s growth in midterm. For the short term, the VN-Index still needs some more re-test on its 580 pts support to strengthen market sentiment. In another case, a rally over the previous peak of 586.7 pts would be better to confirm the uptrend. We also expect the spillover effects from bank group to the other stocks to make the rally become more consistent and healthy.

Recommendation

We still hold the view recommended in the previous reports. Investors can still hold stocks if the VN-Index 580 pts support holds.