20161012_BSC_Vietnam Daily Review_EN_Cautious trading_Technical Views – PVS

Highlight

In the afternoon session, strong selling pressure on Steel made this group lose the green and fell, including HPG, HSG and NKG. Oil and gas stocks leveled off and fell slightly when crude oil prices halted rising as the largest oil suppliers in Russia said they would not cut supply despite Russian president has agreed with OPEC before. Natural rubber stocks including DPR, PHR also stopped the rise in the previous session and traded around the reference. In contrast, the pharmaceutical and plastic maintained the green color until the end of the trading session. Some speculative stocks continued to rise sharply such as FLC, TCH, ROS, HHS. Ending the session, VN-Index rose by 00.09 to stand at 682.45 (+0, 01%), HNX Index was up 0.35 points to 84.89 (+ 0.41%) thanks to the appreciation of the ACB, SHN, VCG and SHB. Market liquidity declined compared with previoues session, approximately 161 million shares were traded on both exchanges equivalent to the value of 2497 billion VND.

Recommendation

Slow trading accompanied with decline in liquidity suggests that investor sentiment remained cautious. Steel stocks can not continue to maintain the momentum and can not spread excitement to the market like in previous trading session. The technical indicators haven’t gained much improvement, showing that short term uptrend of VN-Index is still in question. VN-Index is likely to test the 681 in the next session while investors awaited the results of Q3 of the Bluechips. Investors are recommended to observe movements of VN-Index in the important thresholds such as 681 and 692 to decide whether to participate in the market.

Technical views - PVS - Petrovietnam Technical Services Corporation (HNX)