20160807_BSC_Vietnam Daily Review_EN_Focus on VNM_Company Updates - NKG

Highlight

On world financial markets, the focus put on the US market when the information about the lowest growth rate in six years in the service industry has made investors skeptical whether the health of the US economy is strong enough to prepare for the Fed to raise interest rates. Immediately after the growth data of services industry are in place, the US dollar index has plummeted more than 1%, WTI raised, and the probability that Fed would raise interest rates soon in September fell below 30%. Closing the trading session, VN-Index closed down 2.62 points down to 661.28 (-0.39%), the HNX-Index also fell slightly by 0.14 point to 84.22 (-0.16%). There was time that VN-Index has plummeted nearly 7 points due to VNM sharp correction and net selling by foreign investors, however, at the end of the trading session selling pressure declined and Bluechip such as BVH, CTG, HPG maintained the green color in late trading helped narrow market decline. The focus of the session was put on steel stocks such as HPG and NKG as after early adjustment they have recovered impressively.

Recommendation

VN-Index corrected for the fourth consecutive session due to strong selling pressure on blue-chips. As the selling pressure on stocks like VNM, VCB, PVD has not decreased and ETFs are still in the period of review and reallocating portfolio, investors should not hold Bluechip. Investors can consider buying Small and Midcap which are expected Q3 positive results such as steel, real estate, construction and constructional materials when the VN Index dropped to support levels.

Company Updates - NKG - Nam Kim Steel Jsc. (HSX)