BSC - Vietnam Daily Monitor 2015.08.27 - Stock market might correct soon

Summary

Stock index continued to rise further in 2 consecutive sessions. Key stock groups of Petroleum and Banks supported the increasing trend of the index. Besides, market stocks supported the positive sentiment. Market breadth expanded, with significantly more stocks showing gains at close. Foreign investors reduced the net sales amount compared to yesterday.

Recommendation

In short term, the market is likely to be challenged. Shaking rhythms and slight adjustments may happen. Net selling pressure from foreign investors for Petroleum stocks is the most impactful factor. In addition, the net sale momentum of foreign ETFs may increase in the near future. Investors should consider take profits as stocks arrive to their accounts. Investors holding cash could disburse at the market’s bottom testing session.