20160201_BSC_Vietnam Daily Review_EN_Profit-taking before the holidays

Summary

The index fell in the early month's session. Although VN-Index kept the green in most of the trading time, it quickly fell in the latter half of the afternoon session. The psychology of holiday breaking increased, combined with profit taking in oil and gas stocks may be the cause of market decline. Markets balance biased to falling stocks. Foreign investors remained net sellers on the HSX, while being net buyers insignificant in the remaining two exchanges.

Recommendation

Market psychology can slowdown before the upcoming holidays. This could be an appropriate moment to build the medium-term portfolio. Investors can increase the proportion of shares in down sessions and quickly take profits in up sessions, not need to chase high price in the rally

Macro updates

Vietnam PMI manufacturing increases to 51.5 from 51.3