20160712_BSC_Vietnam Daily Review_EN_Positive rebound

Highlight

Before the session, positive sentiment spreaded over global stock markets as S&P 500 reached a new peak, and other indices including UK (FTSE100), Germany (DAX), Japan (Nikkei) and China (Hangseng) rose strongly yesterday. However, profit-taking selling pressure emerged from the Monday afternoon session led Vietnam market opened fluctuating, unfollow the general trend. However, information about the South China Sea this time did not have significant impact on Vietnam, domestic demand lifted the market rebounded strongly in the afternoon, but less than half number of stocks on 2 main exchanges enjoyed the gain. Update: 4pm today, PCA declared that China has no legal basis to claim historical rights to the 9-dotted line on the South China Sea.

Recommendation

After approaching support 650, the market rebounded in the afternoon session, trading volume remained at a high level. Recommended stocks in short-term portfolio such as CVT and HHG enjoyed impressive gains. After a technical correction, the market recovered to near the short-term peak 661, the cautious psychology in the last trading day before the ruling of PCA on the lawsuit relating to issues in South China Sea has changed to become more excited. VN-Index moved aligned with the rise of the major stock markets around the world. Investors may pay attention to large-cap and small-cap stocks if VN-Index continues surpassed 661 points with increased trading volume.

Technical Views - APC - APC- Phu Irradiation JSC. (HOSE)