20160707_BSC_Vietnam Daily Review_EN_Surge firmly_Technical views BHS

Highlight

Notably during last period was the switch of roles between foreigners and domestic investors. Outside domestic cash has been waiting during April then May when P-notes led the market. Thanks to Brexit which created an opportunity for purchasing, strong cash flow was poured into the market, helping index recover 20 pts in a panic trading session and internal forces continued to help VN-Index had impressive rally breaking through a number of long term highs. Post - Brexit average value traded was about VND 2,700 bil. to VND 2.800 bil. while transactions of foreigners no longer attract much attention.

Recommendation

While the key stock markets in Europe declined, VN-Index rebounded along with the recovery of the trading volume, large-cap stocks such as VNM, GAS, HPG, VCB continued to be a strong support for market to reach new highs of the year. Resistance and support of VN-Index are 666 and 650. Investors may increase the weights of available stocks in portfolio and hold to reap the best results as VN-Index is still in a strong uptrend in the short term, also pay attention to the large-cap stocks as this group will be the main driver lifting VN Index up.

Technical Views - BHS - Bien Hoa Sugar Jsc. (HOSE)