20160805_BSC_Vietnam Daily Review_EN_Continuing correction_Company Updates – FCN

Highlight

The sharp decline of blue-chips such as VIC and VCB, along with the strong selling pressure in penny stocks led the market to continue to have a decline session. VNM and Steel stocks were against the market and increased gradually during the recovery at the end of the session. Foreign investors turned into net-sell position on HoSE, the selling was focus on VIC and MSN. While Vietnam's stock market declined, the stock markets in Europe and Asia extend previous gains due to information about the economic stimulus package of central bank of England (BoE) bigger than expected (cut down 25 basis points of interest rate, an additional 70 billion pounds to buy corporate and government bonds). The move by the Bank of England is expected to increase the demand for risky assets such as stocks, corporate bonds and reduce sterling value and CDS of eurozone.

Recommendation

The market hasn’t stopped correcting, at some points it even plummeted to about 622 points before recovering again and closed down -0.7%. Trading volume improved slightly compared to the previous trading day and above the 10-day average. There are some noteworthy points on this trading session today, such as: (1) the market breadth of the VN-Index still remained negative, with 77 advancers and 143 decliners, (2) large-cap stocks still maintained retreating trend such as VCB, VIC, MSN, CTG, (3) Foreigners become net sellers on HOSE, focus on MSN and VIC, (4) the technical indicators continue to remain negative, (5) the selling pressure showed signs of decline. Therefore, even correcting trend hasn’t stopped completely, the market is expected to fluctuate between 620-630 in the coming sessions. Investors may start buy in gradually at important support levels of the market.

Company Updates - FCN - Fecon Foundation Engineering and Underground Construction Jsc. (HOSE)