BSC - Vietnam Daily Monitor 2015.05.06 - Moving sideways - Macro update

Summary

The sharp rise of gasoline prices and the highest close at ceiling price of exchange rate are two among the last notable events of the previous day.

In today's trading session, the indices turned down, especially the speculative stocks. Yet, the market remains bright spot in the oil and gas group thank to the weakness of dollar and oil price prospects.

Foreign investors keep buying today.

Recommendation

We realized that selling pressure remains strong while demand is still weak. Furthermore, the money flow is squeezed, so we believe that the market continues move sideways in the upcoming sessions within the range of 532 - 570 points.

Investors should reduce the stock weight and wait for clearer signals before disbursement.

Stock recommendations

Short-term portfolio: Buy PVS

Canslim portfolio: Stop loss PVT, HVG, TCM, HT1 and BCC after declining weight of those stocks at 04 May

Macro views

Gasoline prices rose nearly by 2,000 VND per liter in May 5th

Exchange rate tensions