20161011_BSC_Vietnam Daily Review_EN_Active trading on steels

Highlight

The market rose slightly in the morning session thanks to a strong increase of oil and gas group when Russia said they are willing to participate in an agreement to freeze output with OPEC and called on other countries to join this agreement, pushing oil prices up 3%. Most oil and gas stocks rose sharply such as PGS, PVS, PVD, GAS. In early afternoon trading, oil and gas group slowdown and the strong selling on blue chips such as VNM, VCB, STB, BID has dragged VN-Index unexpectedly fall close to 669. However, Q3 business results of HPG has pulled stocks up strongly and the other steel stocks such as HSG, NKG, moreover, excitement spread to other Bluechip like VNM, GAS, VCB, helped VN-Index rebound strongly at the end of the session. Ending the session, VN-Index rose by 8.17 points to 682.36 (1.21 +%), HNX-Index was 0.04 points down slightly to 84.54 (-0.05%). Market liquidity improved with about 185 million shares changing hands, equivalent to VND 3506 billion.

Recommendation

After correcting to near support 668 mentioned in the previous report, VN-Index has recovered impressively, largely thanks to the steel group, excitement has spread to other groups, such as large-cap oil and gas group . VN-Index closed at its highest level during the day and above 681 along with improved liquidity are good signs for the market in the next session. However, the technical indicators have not yet to be improved, making short-term rebound of VN-Index still uncertain. Investors should watch the next movement of the VN-Index, join the market if VN Index is higher than 691 - the threshold where technical indicators will be improved significantly.