20160708_BSC_Vietnam Daily Review_EN_Opportunity

Highlight

Correction is necessary for bull-market to provide mometum to conquer new highs. The investors joined bottom fishing in the panic Brexit session enjoyed 2 week gains. Profit taking selling made indicies corrected, especially in the rallied stocks. Now is the time to seek opportunities in the potential stocks which have not gained much in the last time in with a view of second quarter results.

Recommendation

The market has a slight adjustment with trading volume did not change much compared with the previous trading session. As mentioned in our previous reports about the risks of investing in oil and gas stocks while WTI oil prices are in a downward trend, the oil and gas stocks as GAS, PVD has adjusted strongly today, and it is the main factors causing the market decline. Investors should aware of comeback with buying position in oil and gas stocks in the context of oil prices has the ability to adjust the threshold around 44 USD/barrel. The market will likely continue to adjust in the next session, however, the volatility of the VN-Index will moderate because the volatility index - ATR (15) - is moving sideways. Risk-taking investors can take advantage of adjustments to increase the proportion of Mid Cap stocks.

Investment story - trading monkeys and how market operates