20160413_BSC_Vietnam Daily Review_EN_O&G stocks could rise, but risky

Summary

Though rebounding slightly in the early morning thank to the rise of energy stocks as well as the one of world indices, Vietnam stock indices soon dropped due to the selling pressure. The majority of bank stocks, with VNM and MSN that made VN-Index lost today. GAS is a large cap stocks offsetting somewhat that reduction. Market breadth has not improved, losers still be the majority. Foreign investors remained net buyers on the 3 floor today.

Recommendation

Markets continue stamping around this resistance levels. Fluctuation will continue, the market may rise but not lasting. The market is now looking for oil and gas stocks with the hope for the freeze deal of the oil producers on 17/4; however there is no signs to ensure that agreement. Most of market expectations seem to have been reflected in the energy stocks' price. Besides, the banks are also weak. Therefore, in case of the deal fails, VN-Index has no positive opportunities. We hold the view that it is time to reduce the proportion of shares or take profit. Investors continue to reduce the proportion of rising sharply stocks in this period and follow to rebuy when technical corrections occur, note not to chase at high prices.