20160801_BSC_Vietnam Daily Review_EN_Monday Correction_Company Updates - DHG GEX

Highlight

The market today had a negative session when the VN-Index fell by 3.85 points, down to 648.38 points. At level 650 points of the Index, the market still faced strong resistance. Both stocks which have the biggest influence on the VN-Index as VNM and VCB decreased by nearly 2%. Although there were GAS and VIC gained points among blue-chip stocks, but this was not enough to maintain the level 650 points of the VN-Index. Particularly, the market continued to witness many stocks dropped to the floor with no buying surplus such as TTF, VHG, OGC, EVE, in which OGC was affected by negative business results information with nearly 500 billion of loss after tax. As expected in the previous report, in today's trading session, oil and gas, constructional material and Real estates stocks have recovered and traded better than the whole market while many Bluechip declined such as HSG, MWG, VNM, HPG, VCB. However, as we said, this is only the technical recovery of oil and gas stocks and short-term investors should reduce oil and gas group position when expected target is achieved.

Recommendation

The market declined today (-0.6%), there was time that the VN-Index fell to the support level of 645 but quickly recovered, trading volume decreased compared to the previous session. The notable point of today's session is that while cash flow showed signs of withdrawing from large-cap stocks such as GAS, HPG, KBC, MSN, SSI, the trading activities on small and medium-cap stocks such as HHS, OGC, HAR was quite exciting. Despite that VN-Index only dropped slightly, market breadth was fairly negative while the number of gainers was completely overwhelmed by the number of losers with 66 gainers to 155 losers. On technical aspects, besides MACD and RSI which showed negative signals before, today MFI cut down and lost trendline, ADX and Aroon are showing neutral signals. Based on the above factors, VN-Index is expected to continue to correct in the next session to challenge the support zone 640-645. Investors should reduce the proportion of stocks in the portfolio if the VN-Index failed to hold above this support. Investors interested in FX and global financial market may refer to our views in next page.

Company Updates - DHG - DHG Pharmaceutical Jsc. (HOSE)

Company Updates - GEX - Vietnam Electrical Equipment Joint Stock Corporation (UPCoM)