20160615_BSC_Vietnam Daily Review_EN_Slowdown foreign capital

Highlight

European and US stock indices continued going down slightly, seemed to wait for the results of FOMC meeting. By contrast, Asian markets had gains despite opening trading day by news of Chinese A-Shares were refused to enter the emerging market benchmarks the third time by MSCI. On HoSE, thanks to strong demand on GAS in late afternoon led the market, VN-Index also enjoy green session with the region. 2 main exchanges fell sharply in the morning and recovered slightly in afternoon session. The focus lies in Upcom today. With the BCs on 2 main floors under influences of macro and global news, the money was pouring into Upcom and Upcom-index had impressive gains.

Recommendation

The support zone 619-620 became quite confident when once again VN Index approached it and rebounded, trading volume continued to remain at the same level compared to the previous day. The negative point for the general market is that foreign investors continued net selling transaction. WTI oil price is still trading around 48.2, supporting oil and gas stocks experience a more positive session than the previous one. Although VN-Index increased slightly, technical indicators are not good enough to confirm a further rise, thus, investors are still recommend to hold reasonable percentage of stocks in portfolio. Currently, the support levels of the VN-Index are at 625, 619 and resistance locates at 629, 633. Investors prefer high risk can try pharmaceutical and health care stocks as this group generally increases better when the whole market falls into difficulties.