20160725_BSC_Vietnam Daily Review_EN_Weakened Money Flow_Technical Views-CSM

Highlight

In the opening session of this week, the market was traded around 650 level with a divergence among the pillars. Technical rebound was shown in the session when the Index maintained green during most of trading time. However, cash flow was too weak to hold the patience of investors as selling pressure gradually increased in ATC session, VNM dropped by 2,000 dong made VN-Index closed with a slight decrease. The movements of a number of stocks based on Q2 earning results, as positive number helped ITD, DBC, HLG to gain while TCM, TMT, PPC fell as earnings under expectation. Foreign investors were net buyers with relatively high value on HOSE in the recent period. In the 2nd screening of 2016, BID, GAS, HNG, MWG had replaced EIB, HHS, HVG, PVT in the VN30 after HoSE changed the selection criteria from Trading value to Market capitalization.

Recommendation

The market showed an effort of rebound in most of the trading time but closed with a slight decline and fell below resistance 650, trading volume fell sharply compared with the previous session. VCB and VIC regained and helped the market to be balanced in terms of points in most of trading time. As expected in last report, constructional material stocks such as HPG, NKG, TTC, CVT continues better movements than market. Cash flow weakened significantly and showed the signs of withdrawing from large-cap stocks. Simultaneously, on the technical aspect, ADX weakened to near the level of 20 and +DI is tending to cross-down -DI, other signals such as MFI, MACD, RSI showed no signs of improvement. From the above factors, it is likely that the market will continue to challenge the support level of 640 in the next sessions and investors should note that downside risk in the short term is remaining high. Investors interested in international financial markets and world commodity markets could refer to a short views of this week in the next page.

Technical Views - CSM - Southern Rubber Industry Jsc. (HOSE)