20160823_BSC_Vietnam Daily Review_EN_Keep moving sideways

Highlight

VN-Index gained in the context that most stock markets in the region declined as oil prices decline (-3%) and the possibility the Fed will raise interest rates within the next month. Oil prices corrected strongly due to pressure by Iran, one of the largest oil exporters in OPEC, is expected to increase the daily export volume up about 150.000 barrels / day. However, the US dollar index is in the short-term downtrend and data of US oil inventory which is expected to continue to fall will be support for oil prices in the short term. Market breadth improved with 207 advancers / 181 decliners. Foreigners were net sellers with approximately 175 billion net on the HSX and net buyers on the HNX. VIC and PVD continued to be 2 shares with the highest trading volume from foreigner investors.

Recommendation

Foreign investors continued net selling for the 8th session so that the market didn’t look attractive in investors eyes, liquidity weakened and market transactions stagnated. Market recovered from early morning when it was approaching support level around 650, which is the trend throughout the session. Liquidity also focus on key stocks like HPG, VNM, KBC, VIC lifted market back to reference rate at the end of the session. TTF and KDC reached ceiling price, the recovery occurs on some stocks such as DAG, TCM, VCG, VSC, VSC, CVT. Though the recovery was back to the majority of sectors and market indices, trading volume has not been positive enough. As expected before, the market continues to move in 650-660, market liquidity may not rise again due to the absence of foreign investors being net buyers. Investors are recommened to hold the stock exposure in moderate weight, in order to avoid risk when the general market showing signs of weakening, maintain a certain amount of cash to repurchase fundamental shares available in the portfolio when they are back to the lower price range. Restrict trading of growth stocks due to the effects of market information because risks may arise when information are not enforced.