20160606_BSC_Vietnam Daily Review_EN_Rising risk

Summary

Today, market was corrected after touching the high of 2016. Cash-flow continued to be fairly distributed. Overseas fund, Private Equity New Market II, sold 8 mil HPG via put-through transaction with total value at VND268 bil, leading to the first session that foreigners were net sellers on HOSE after 2 weeks. Despite of market correction, there were some positive gains in sugar stocks LSS, SBT, confectionery stock KDC and TMS in BSC recommendation portfolio. Market breadth turned negative on exchanges. HNX-Index closed near to the reference level while Upcom-index witnessed a significant correction. Market liquidity declines slightly on HaSTC and Upcom.

Recommendation

As reported in recent reports in week 22th, after a period of going sideway, cash flow has come to some banking stocks today such as STB and VCB. However, selling pressure on some BCs sank the market slightly. The market may fall into short-term downtrend in the coming session with the support levels at 618, 603 and resistant level at 625. Investors should keep stock exposure at low levels to reduce short-term risk from price decrease, and should be noted that opening a new status in the SmallCap and Penny stocks at the moment will expose capital to more risks than before.