20160608_BSC_Vietnam Daily Review_EN_Exciting session

Summary

Oil and gas stocks rose strongly following the global oil price movement above 50$, helped the market passed over 625 pts then BVH and VNM lifted VNIdex above 632 pts. Due to profit taking selling in GAS, there was a correction before closing but market still reached new short-run high at 627.87. Trading value rose sturdy and foreign investors, via P-Notes, had a net buying session at highest value in a month. Besides bluechips, capital was fairly spreaded to mid and small cap. Notably stocks were sugar group SBT and BHS, Real estate HAR along with 2 stock BSC recommended materials CTI and agricultural GTN. HNX-Index and Upcom-Index also surged with an improvement in liquidity. Foreign investors were net buyers on those exchanges. Market breadth was positive on exchanges.

Recommendation

The market enjoyed a rally today to break through resistance 625 quite convincingly with the contributions of many BCs including oil and gas and banking stocks as we have said, while the insurance sector also experienced impressive growth. Liquidity improved strongly and focused mainly on the BCs, Large and MidCap while Penny suffered further corrections. Foreign investors continued net buying, which was a great support to the market. VN-Index may go back to test 625 again when it is very near the upper bound of the bullish channel, investors can take advantage of the correction to increase stock weights to go one step ahead a rise to 638.

Technical Views - CTI - Cuong Thuan IDICO Development Investment Corporation (HOSE)

Technical Views - OGC - Ocean Group Jsc.(HOSE)