20160607_BSC_Vietnam Daily Review_EN_Ongoing accumulation

Summary

Thanks to the BCs’ positive trading session, VN-Index was up to test the resistance 625 pts while HNX-Index created new high in 2016. The rise in oil price helped oil and gas stocks gained and led the markets. Liquidity declined on HOSE but improved on HASTC. Market breadth became positive on both floors. The progress of accumulating by foreign investor was ongoing on exchanges.

Recommendation

The market experienced quite a rise because cash flow lifted BCs. Market breadth was positive and there is signals that money was being withdrawn from penny stocks and made it riskier to invest in them as we have reported. The support from the cash flows of foreign investment and the rise of oil and gas stocks have opened up possibility for further gain to test the peak 638 if VN-Index passes the resistance at 625. In addition, investors should pay attention to the support at 617 and resistance at 630 of the VN-Index. Investors may look for opportunities from the leading BCs such as oil and gas and bank stocks when the market go beyond 625 points because they will be the key drivers for the market.