20160505_BSC_Vietnam Daily Review_EN_VN-Index to fluctuate around 600_CVT Update

Summary

VN-Index rose above 600 in the beginning of trading day thanks to VIC. Despite the strong pressure from profit realization, VN-Index still closed higher than 600 due to the increase of banking sector. Foreign Investors remained net buyers on VN-Index and Upcom but net sellers on HNX.

Recommendation

The VN-Index has reached 600 points thanks to the significant increase of VCB. It can be seen that selling pressure has become stronger when VN-Index rose sharply today because 600 pts is a solid resistance level. After led by real estate and steel stocks, VN-Index is now driven by textiles today. We believe that a technical correction may occur in short term, which cause VN-Index to re-test 600 points and then break up in spite of the unimproved market’s liquidity. Investors may consider taking profit in the coming sessions, re-allocate portfolio in case of market correction and especially avoid buying high.

Company updates

CVT - CMC Jsc. (HNX)