BSC_Daily report 02.02.2015_the market will soon stabilize back toward the weekend_Jan-2015 PMI decreased by 1.2 pts

The weak demand was the main factor that makes the 02 indices today keep falling with shrinking volume. Currently, the caution still dominates the market because investors still (1) want to wait and see for additional information and subsequent impacts related to the Circular 36. In addition, (2) there are only 02 trading weeks left until the Tet holiday; investors often want to sell out stock to collect money at the end of the year. Besides, (3) foreign investors turned into big net sellers on both exchanges. With the above psychological barriers, we believe the market liquidity will continue to contract and investment opportunities will be small which can just appear in a few stocks with positive news on earnings in Q4/2014. However, we are not too pessimistic about the market and believe the market will soon stabilize back toward the weekend. On technical view, we expect the VN-Index will not fall its support around 565-570 pts. A decline below this support can boost the short-term selling force and then threaten the market trend. The resistance remains at 580 pts.

Recommendation

Base on the analysis above, we advise investment view as follows: - Short-term investment activity: Investors should be cautious, re-structure and reduce the stock ratio. - Mid and long-term: Focus on the basic stocks, can still accumulate stocks at the declines.