20160706_BSC_Vietnam Daily Review_EN_Technical correction

Highlight

The market opened in the context of the British pound continued to probe the bottom while trading at the lowest level in 31 years against the dollar and European stock markets as well as Asian stock markets declined. VN-Index opened lower than the closing point of yesterday, around the support level of 645 points, the blue chips were down, including stocks of securities, steel and banks, which helped lift the VN-Index points in previous sessions. When the afternoon session began, the market showed the divergence when the VN-Index closed down despite maintaining at gaining-point situation in most of the time, and the HNX-Index gained point thanks to the help of VCG, which was traded at ceiling price. Large cap steel stocks as HPG, HSG rose again after adjusting at early of the session, in addition, construction stocks and real estate stock as CTD and KBC paid attention when it against the market trend. The market breadth was fairly balanced as gainers-to-losers on the 2 exchanges was 151/147. Foreign investors were at net short positions across the market with 24 billion on the HSX and 25 billion on the HNX.

Recommendation

Market experienced a slight correction when there was a time that VN-Index traded around support 645, trading volume decreased. The banking stocks, securities stocks and large cap stocks, which lifted VN-Index to a higher level in the previous session, corrected today. HNX-Index exhibited a more positive performance than VN-Index when it closed at its highest level during the day and gained quite thanks to the contribution of VCG. Technical indicators still continued to support new rally of VN-Index, therefore, investors can take advantage of the correction to increase the stock weights of the portfolio.