20160614_BSC_Vietnam Daily Review_EN_How far can market rebound

Highlight

Ending yesterday session, reds covered the US, European and Asian stock markets along with the fall oil prices to week low. Besides, the fear gauge CBOE Market Volatility Market Index rose the most in six years along with US and Japan government bond yields have dropped, showing that cash was going away from risk. "Risk off" is probably an appropriate term for the state of the current global market where investment decisions are driven by the risk aversion of Brexit. The influence of global markets has been shown when market plunged shortly after opening. But as mentioned in the yesterday report, the support level 619 became noticeable when it halted the fall of the market, and attracted low - price demand, helping market recovered and ended the day in the green. Investors remained cautious with this recover when liquidity declined on 2 main floors.

Recommendation

As we expected, after approaching support 619, VN-Index has rebounded and WTI oil price has fluctuated around a stable support 48.2, helping VN-Index and petrol and gas stocks recover. Investors should consider actively taking profit on CVT in our short-term portfolio as the price is quite close to our target price recommendation 30.0 or may continue to hold for the medium term. VN-Index closed green, higher than resistance 625, though trading volume decreased somewhat expresses doubts about the possibility of rebound of the VN-Index. Investors prefer high risk may continue to increase the weights of shares available in portfolio when the technical indicators of VN-Index become better, confirming further rise.