BSC - Vietnam Daily Monitor 2015.05.05 - Hard to soar tomorrow - VKFTA

Summary

The stock market stabilized after the over-reaction in the previous session. The stock index closed simultaneously in the green.

News about the location of the COSL Prospector oil rigs of China becames clearer combined with the net buying trend of foreign investors (after eliminating transactions) has supported the market sentiment.

However, speculative stocks did not have a good recovery session after falling sharply yesterday. Forex market is quite tense when the interbank rate closed at the ceiling price announced by SBV.

Recommendation

We assess that this recovery session today is primarily a technical recovery and the momentum is difficult to maintain tomorrow. The indices will likely fluctuate in a slight uptrend in the next session.

Investors can hold to utilize the bounce, and stop to take bottom fishing activities since the market is still volatile and the trend is unclear.

Macro views

South Korea, Vietnam Sign Free Trade Agreement

Vietnam textile prospect