BSC - Vietnam Daily Monitor 2015.05.26 - Market need a correction - Macro views - HDG updates

Summary

The two exchange indices rose sharply, VN-Index approached to the resistance of 570 points. Liquidity surged. Market breadth was positive.

Banking stocks continued to be the main pillars of the overall market. The money flow continued to spread in large-cap stocks. However, the profit-taking actions appeared in few speculative stocks.

Recommendation

Basically, VN-Index was closer to 570 as we forecasted yesterday. In the next session, the more likely the market will shake stronger. Banking group continues to play the main role supporting the index. We predict that the correction in the coming sessions might be smoother thank to the buying momentum of foreign investors. We also anticipate that ETFs keep buying in the short-term.

We recommend investors to maintain portfolios. Investors can sell at the high price then cover at the the lower price for the short-term trading. For long-term investment, investors consider to increase the stock weight during the correction. Notable shares are the banking, the infrastructure stocks, and several shares which run out of foreigner ownership limit (FOL).

Stock recommendations

Short-term portfolio: Buy VCG and TDH

Macro views

FDI keeps growing in May 2015

Company updates

HDG - Ha Do Group (HSX)