BSC - Vietnam Daily Monitor 2015.05.29 - Adjustment to return the uptrend

Market highlighs

The two indexs moderately declined. VN-Index declined 0.6% and closed at 569.5 while HN-Index declined by 0.5%, closing at 83.2. Market liquidity was at 180,8 millions of unit, which was equivalent to VND 2,280 billion, down by 17% compared to the previous session. Bank stocks weakened under profit-taking pressure. Almost banks declined, except the leading stocks such as VCB, ACB and EIB. Speculative stocks also declined except SHN. The most liquid stocks were speculative ones with 14.7 million shares of FLC on the HSX and 6,1 million shares of KLF on HNX. Foreign investors were the net buyers on the 10th consecutive session with descending volume, reaching VND 11 billion on the HSX and VND 7 billion on the HNX.

Opinion

After yesterday's strong gain, Bank stocks signed of breathlessness prior to profit-taking pressure. This session was also the biggest fall since 19th May. In general, declined session was not unexpected, and negative. The leading stocks were still increased and stocks were differentiation. Indexs could had one more correction sesstion before rising again to head to the threshold of 580 points. The range of 560-565 points was the good support level for VN-Index, which could also be considered as point of the bottom fishing.

Recommendation

BSC had recommended clients to reduce hold position of shaprly increased stocks. It was highly time for clients buy back stocks. Supported level 560-565 of VN-Index was recommended to focus on buying stocks.