20160715_BSC_Vietnam Daily Review_EN_Corrected before weekend

Highlight

Opening today session, global stock markets recovered after the correction in 13/7, except UK stock still fluctuated sideways under the impact of the surprise that BoE did not lower interest rates as expectation of market. Despite of the positive context, VN-Index continued correction from yesterday afternoon and divergence was seen most sectors. As VCB corrected, market plunged in morning before recovering after hitting a support level of 660 points, but still ended Friday in red.

Recommendation

Market experienced one slight correction (-0.3%), had corrected to near the support level of 660 and then rebounded, however, the demand was not strong enough to help VN-Index closed green, trading volume also declined considerably compared with the previous trading day. Closing the week, the stocks rose significantly last week such as Pharmaceutical, Steel, Construction materials corrected much, while the banking and real estate grew better than the market. In short term, VN-Index may need time to conquer the 680 level while demand is weakening somewhat though technical signals are still performing well. Investors can continue to take advantage of the correction to accumulate good fundamental stocks in the medium-term portfolio to benefit when the VN-Index has been moving in the medium-term uptrend.