BSC - Vietnam Daily Monitor 2015.03.31 - Upcoming short recovery - HPG updates

Summary

Foreign investors stop their strong selling as we said yesterday. On the contrary, they turned to buy a net value of nearly 2 billion VND on both exchanges. The market indices thereby improved than that yesterday.

Recommendation

We found that this recovery has not really attracted money flow. Thus, the recovery is not reliable unless the liquidity improve significantly in the next 1 or 2 days. We believe that the stock market continues to rise tomorrow due to the recent released active macro-economic news.

We recommend traders can hold or close their position in time in case that this recovery shows signs of weakness. Cautious investors continued to be patient and stay out of the market.

Macro views

The index of industrial production increased by 9.1% compared to that last year. The deficit of trade balance is USD 1.8 billion in the first 3 months. Executed FDI remains positive despite registering FDI accounted for only 55% of that in the same period last year.

Company updates

HPG – Hoa Phat Group JSC (HSX)