20160610_BSC_Vietnam Daily Review_EN_Rest for next rally

Summary

Last night, oil continued leading the global market as the correction in oil prices made the majority of indices from the US, Europe and Asia closed in the red. Following that path, Vietnam market corrected marginally as the oil and gas BCs fell under the impact of oil prices and there was a divergence between the pillars of market. Closing, HOSE declined slightly while PHP and NTP lifted HNX to reach new short-term. The foreign investors remained net buyers had helped attract capital flows into the market, thus liquidity improved on HOSE. Investors still looking to new opportunities in the mid-cap stocks and some notable industries today can name securities, sugar and pharmaceuticals.

Recommendation

The market closed this positive week with slight decline and liquidity improved compared to previous session. The banking stocks continued to take turns supporting market in the context of oil price correction that made petroleum stocks lagged behind as we expected. Sugar stocks closed the week with the most impressive growth followed by steel, insurance and pharmaceutical groups. Investors interested in oil and gas stocks, sugar and rubber should note our expectation on the volatility of world commodity prices summarized in the following page. We keep our opinion that possibility for VN-Index to enter 638-641 is high, however, the VN-Index was quite close to this zone, thus, investors should reduce stock exposure when VN-Index approaches this peak of many years.