BSC_Daily report 12.02.2015_VN-Index is likely to fluctuate around its 580 pts resistance in the short term

The market today continued rising because the foreign investors kept their strong net buying while the supply were shrinking before the Tet holiday. According to our observations, the VNM ETF fund is getting positive movement when its premium exceeded 2% and the volume advanced. We believe the fund will maintain its buying momentum for the rest days until the holiday. After the Tet holiday, we expect taking profit pressure will increase, especially at the stocks which have rallied much. The banking stocks today have begun showing signs of corrections as well. Therefore, the VN-Index is likely to fluctuate around its 580 pts resistance in the short term. The stock differentiation may occur and will follow the movement of the foreign capital inflows.

Recommendation

• Short-term: Investors should consider reduce stock ratio around the 580 resistance. Consider taking profit stocks which have strong rallies, while still able to continue holding stocks not increased much.

• Mid and long-term: Focus on the good fundamental stocks, continue accumulating in declined days.