BSC - Vietnam Daily Monitor 2015.05.04 - Investor should be calm - Macro updates - Hello May

Summary

All 03 indices fell sharply in the first trading day of May. The trading volume surged up. The market breadth was narrowed down.

Number of shares declined was dominated especially the stock market group.

However, foreign investors still increased their net buying with a net value of VND 245 billion.

Recommendation

The unfavorable news appeared in early trading session of the month that made a strong selling pressure today. The stock indices are likely decrease tomorrow.

Currently, the VN-Index broke the support level of 557 and 547 points, which corresponds to 61.8% and 50% Fibonacci. We noted that there are two other technical support levels which are 540 and 533. If these two are broken, VN-Index will return downtrend.

We also note that investors should remain calm in the present moment as the market at this time is unlike the previous time. The fall of the index today may be the overreaction of the market; furthermore, positive factors such as economic production growth or the continuous net buying of foreign investors remain.

We recommend to reduce the proportion of shares to ensure the safety of the portfolio. Investors should be patient until the positive signals appear. Remember, big opportunity often occurs in the most volatile period.

Macro views

Manufacturing is growing, PMI expanded Petrol price may be adjusted relative

Monthly story

Hello May