BSC - Vietnam Daily Monitor 2015.06.05 - The VN-Index to 580 points

Summary

Stocks boomed. VN-Index approached 580 pts with market liquidity advanced 30%, total matched volume reached over 200 million units. The bull spread widely. The banking, Oil and gas, Securities company, Real estate & Construction have rallied sharply. CII performance was a highlight on the HSX when hit the ceiling with massive volume of more than 14 million units. Foreign investors pushed up net selling on the HSX to 100 billion dong but remained net buying of 27.6 billion on the HNX. ETF FTSE review on Q2: STB is added, PPC is excluded. HHS is not added as previous expectation.

Recommendation

High expectation on government policy change and Q2 business outcome are the main factors supporting for this rally. In the following week, the market trend is believed still positive; VN-Index can exceed its previous peak of 580 pts. Buy- and -hold good fundamental stocks which have not rallied much can be good investment choice. However, if the market liquidity become weakening and/or bank stocks turn worsening, investors should consider reducing the stock rate.