20160808_BSC_Vietnam Daily Review_EN_Expecting rebound_Technical Views - VNR

Highlight

Vietnam's stock market rose slightly in the context that the Asian stock markets extended gains. MSCI Asia Pacific Index rose to its highest level in a year, led by Japanese stock market amid the JPY continued to depreciate against the US dollar after information on employment, retail sales and industry output showed the country's economy is warming. VN-Index fell almost 5 points at one point during the day, mainly due to the negative impact from the strong selling pressure on the VIC has brought it down to the floor price. However, local demand helped VIC recover well in the session, the decline in the VN-Index. Foreigners were net sellers today to the HSX and HNX, sales force focused primarily on VIC (more than VND 100 billion)

Recommendation

The market fluctuated during trading session, closed slightly up + 0.3%, trading volume decreased slightly compared to the previous trading day. During the session, the main index movement were quite similar to the movement of VIC. This stock also demonstrated a huge volatility, more than 7% during the session. Selling pressure in today's trading session declined somewhat compared to the previous trading session. Markets show signs of balancing efforts in recent sessions when continuously creating hammer candlesticks. The market breadth of the VN-Index today has improved significantly with 118 advancers / 84 decliners. Hence, VN-Index is expected to recover in coming sessions and investors can consider using part of capital to acquire good fundamental stocks.

Technical views - VNR - Vietnam National Reinsurance Corporation (HNX)