20160729_BSC_Vietnam Daily Review_EN_Down before the weekend

Highlight

The halt of the fall in oil prices with signs of recovery this morning helped GAS recovered well in the session and became the major leader of market. However, the fact that other pillars continued falling dragged VN-Index down to the level of 650 pts. Both liquidity and market breadth show no positive sign. The scenario that foreigner sold-off MSN at the end of the session replayed today while foreign net position at HPG continued to be increased.

Recommendation

The market closed down and fell to 652.2 points (-0.75%), trading volume was maintained and stayed close with the 10-day average, notably, the trading in large-cap stocks (VNM, VIC, BVH, PVD, CII, SSI, MSN) declined compared with the previous session. Supplies rose in the end of the session after (1) cash flow did not had enough change to push the VN-Index surpassing the level of 660. Positive points in the session were (2) VN-Index continued to be well supported at the level of 650 and (3) foreign investors remained as net-buyers. On technical aspects, (4) indicators are showing two tendencies, both positive (MFI and Chaikin Oscillator are still moving on upward trend line) and negative (RSI went down and lost trend line, MACD is maintaining negative divergence, ADX is indicating an accumulative movement of VN-Index). Synthesize all (1) (2) (3) and (4), VN-Index is expected to have an accumulative movement between 650-660 next week. Investors can continue to use a part of their portfolio to apply the tactical “buy at the low – sell at the high” in short term to maximize profits.