20160628_BSC_Vietnam Daily Review_EN_Stay cautious

'Highlight

In the morning session, the market fell slightly by 3 points in early trading, but quickly recovered, however, trading volume stayed lower than the previous session. Early afternoon, VN-Index turned green due to the recovery of BCs stocks. The large-cap stocks such as VCB, CTD, DHG, HSG, PNJ turned blue especially VNM rose sharply thanks to positive news on the Management Board resolution on the issue of open room for foreign investors. VNM with sudden rebound in price and volume helped VN-Index closed green while VNM contributed 1.86 points to the VN-Index. In the morning session the market witnessed a divergence between the two major trading floors and Upcom when UPCoM-Index rose but 2 the main trading floors fell. In the afternoon session, the divergence disappeared to make room for the green color on all 3 floors deal.

Recommendation

The market experienced quite positive movement at the end of the session thanks to the rise of VNM spread to other BCs. However, VN-Index has not been able to overcome resistance EMA15 to open up the possibility of rebound to the top. In particular, the market may have trouble tomorrow's session when 270 million shares traded on the 6th week before going to the account. Investors are recommended to reduce stock weights when VN-Index losing the supports 618 and 604 in the worst case. Investors interested in commodity prices, particularly gold and WTI oil price, can consult technical analysis views of BSC in page 2.