20160218_BSC_Vietnam Daily Review_EN_Profit taking will not remarkable tomorrow_Macro update

Summary

The excitement in the oil and gas stocks in today's session was basic element blowing new wind to the market which had been somber in recent days. Besides, foreign investors net buying again on the HSX also impact positively on domestic investors' sentiment. The index rose right from the opening of the session, kept green color during the trading and closed at the high point of the day. Number of stocks gained overwhelmed, while volumes rose sharply compared to yesterday. In addition to HNX and UPCOM, foreign investors were net buyers in HSX for the first time after 4 consecutive net selling sessions.

Recommendation

The ability to increase is still exist at this time by the combination of two factors: (1) The consensus among stock groups, and (2) The index has increased significantly yet. However, the market still need one or a leading group of stocks in order to go further. Therefore, the VN-Index might need more time to accumulate and moves towards the 560 points. Investors continue to buy in the technical decelerations of the market and sell when VN-Index approach the next resistance of 560 points.

Macro updates

- January FOMC statement showed that Fed worried that tighter global financial conditions could hit the U.S. economy and considered changing their planned path of interest rate hikes in 2016.

- Iran expressed the effort to stabilize oil prices between OPEC and non-OPEC oil producers which include Saudi Arabia, Russia, Qatar and Venezuela.

- Domestic gasoline prices decrease for 9th consecutive time, down to 13,752 VND / liter for MOGAS RON 92 which is the lowest price since 7/2009.