20160713_BSC_Vietnam Daily Review_EN_Steady gain

Highlight

Vietnam stock market has shown strong gain since yesterday afternoon as the geopolitical concern could not make investors hesitant. Therefore, entering today session with a number of support information such as the positive gain of global indices, especially S&P500 continued finding new peak and the judgment of PCA rejecting legal basis of China‘s claim in the South China Sea, the rally of VN-Index was in line with forecast. The upward momentum started by market pillars, notable was banking group, then responded by other blue-chips, spreading out to the whole market before attracting a huge demand at the end of the session. VN-Index surged by 2.46%, receive the consensus of HNX-Index. One other point to attend was the rise on HOSE gradually attracted foreign capital as the net purchasing value has increased over the recent sessions.

Recommendation

As capital focused on large cap stocks with good fundamentals, the market's upward momentum, despite warming, still represented certainty when accessing new resistances. Specifically, despite the correction in Pharmaceutical, Building materials and Minerals today, thanks to the rise of Banking sector and other bluechips, VN-Index surpassed 665 resistances without significant correction during today session. Investors should focus on fundamental stocks with good Q2 results and partial profit taking when the index reaches the resistance at 680, 690.