20160616_BSC_Vietnam Daily Review_EN_Cashflow shifting

Highlight

Last night, Fed’s FOMC June meeting ended with unchanged interest rates as expected by investors but the speech after that showed pessimistic on global economy. Oil continued its fall and put direct impact on oil and gas stocks, leading the 2 main exchanges declined slightly. However, the capital was being attracted by the small and mid-cap stocks, which helped the market liquidity improved significantly. Besides, the large stocks on Upcom still got attention as Upcom premium announcement is coming.

Recommendation

As we expected before today session, two major trading floors experienced slight decline, trading volume rose insignificantly, implying reluctance about the short term trend of the market. However, the technical indicators continue to deteriorate along with the fact that many BCs decreased, foreign investors remained net sellers, opening the possibility of short-term bearish reversal of VN-Index. In contrast, the UPCoM-Index continued to maintain rising momentum with high trading volumes. Investors are recommended to reduce stock weights in portfolio to avoid short-term risk.

Technical views BCC - Bimson Cement Jsc. (HNX)

Technical views NT2 - PetroVietnam Power NhonTrach 2 Jsc. (HOSE)

Technical views HT1 - Hatien 1 Cement Jsc. (HOSE)