20160718_BSC_Vietnam Daily Review_EN_Breakout at the closing

Highlight

The Ministry of Trade decisions applying safeguard policy on steel products imported into Vietnam for 4 years created a mutant gain on steel group today. The market started trading week with the caution after two correction sessions last week as the market liquidity dropped sharply even though the indices closed in the green. On HOSE, VCB continued leading the market while that role in the HNX was for VCG. Trades of foreign investors were at low value and focused on large-cap.

Recommendation

The market has recovered strongly after 2 corrections last week with trading volumes declined below the 10 day average. As was expected in the previous report, banking stocks especially leading VCB was the main lift for the market today. VN-Index could continue using gaining momentum today to challenge resistance at 680 in the next session, however, investors should note that if there is no increase in trading volume corresponding to increasing, investors shouldn’t raise stock weights because this is sensitive area of the market. Investors prefer risk may be interested in construction stocks (CTD, HUT, VMAX, BCE ...) and construction materials (VIT, TTC, DAG ...) when the 2 groups after correcting to support is expected to rise again. Investors interested in commodity market developments and bonds can refer to the next page.