20160727_BSC_Vietnam Daily Review_EN_Strong rebound_Company Updates VCA LCG

Highlight

On the global macro views, in the next 2 days, we will receive the decisions on the monetary policy of the US and Japan. In the US, Fed which still has concerns following Brexit shadow, will be hard to raise interest rates the second time in this July meeting. While in Japan, Bank of Japan seems to consider the "helicopter money’’ policy, in which the central bank policy directly funds government spending. This capability appeared after Japanese Finance Ministry decided not to sell 50-year bonds. Winning in parliamentary elections earlier this month, Prime Minister Abe has condition to pursue his economic stimulus. Program to buy government bonds is closing to limit, to pursue the goal of recovering economy, Prime Minister Abe should provide an alternative solution for QE and it might be “helicopter monetary” policy along with new stimulus package. In a statement today, Prime Minister Abe announced scale economic stimulus package will be around 28 trillion yen (equivalent to 265 billion dollars), much larger than previously expected number.

Recommendation

The market rebounded since the early hours of the morning session and closed at the highest level of the day at 656.1 (+ 16.1%), trading volume increased compared to the previous session although still lower than the 10-day average. Cash flow becomes more active, trading on bank stocks such as VCB, BID, CTG and representative of the steel industry HPG surged, supporting VN-Index. On the other hand, though prices of Blue-chip such as HSG, PVD, GAS recovered, trading volume did not increase correspondingly. Today's trading session showed positive signals such as (1) the trading volume and price recovered, (2) VN-Index closed at its highest level of the day, (3) the market was driven by the Largecap stocks, (4) good reaction near supportive zone 645, hence, VN-Index is expected to continue to rebound in the next session to test resistance at 660.

Company updates - VCA - Vicasa Steel Jsc. (UPCoM)

Company updates - HPG - LCG - Licogi 16 Jsc (HOSE)