20160609_BSC_Vietnam Daily Review_EN_Gearing up

Summary

After passing the resistance at 625, the market fluctuated around the reference level before surging in afternoon session. Market momentum still relied on oil,gas and bank sectors as those BCs had positive macro news. Both the VN-Index and HNX-Index created new short term peak today with market liquidity fell slightly along with market breadth always kept positive. The process of accumulation by foreign investors continued supporting markets. On HoSE, cash flow evenly spreaded to small and mid cap groups. Meanwhile, Upcom moved in contrast to 2 main exchanges with high trading value due to selling pressure spike in GEX. This suggests that perhaps the money has been attracted to the accumulation on HOSE.

Recommendation

The market has enjoyed quite a rise with volume declined thanks to supports from banking and oil stocks as we expected in our last report. The oil and gas stocks continued to benefit from rising oil prices is a positive support for the market. We expect that VN-Index will soon return to its rise towards the top price ranges in 638 – 640. Investors can increase weight of stocks in market correction to profit from the rise to 638-640.

Technical Views - HCM - Ho Chi Minh City Securities Corporation (HOSE)