BSC_Daily report 03.02.2015_Investors should remain cautious

The sudden selling forces in banking stocks at the end of the session today was likely derived from the domestic sides when foreign investors only net sold about 43 billion dong on both exchanges. This has been raising a doubt that this selling pressures came from the margin cut of the bank stocks under the impact of Circular 36. Because the banking group accounts for over 20% of the total market cap, this sharp selling will certainly pose negative effect on investor’s sentiment. Besides, this has also technically pulled down both VN-Index and HNX-Index to break their important supports which will really threat the market trend.

Recommendation

Under recent unpredictable shocks in the stock market, we believe that investors should remain cautious and limit open new long positions and just focus on the good fundamental stocks with prospective business outcomes.