20161013_BSC_Vietnam Daily Review_EN_Moving sideways

Highlight

The market continued to trade slowly in the morning session before becoming more active in the afternoon session. Ending today session, VN-Index rose by 2.78 points to 685.23 (+ 0.41%), the HNX-Index rose by 0.45 points to 85.34 (+ 0.53%). A total of 165 million shares were traded on the two exchanges equivalent to the total 2.550 billion trading value, while put-throughj on HOSE reached more than 250 billion. Green color is spread fairly evenly over the trading floor when most industries are gainers. Only notable industry groups declined which are oil and gas and banking, however, there is still a divergence in these industries such as PVD, PVS, PXS and VCB, STB declined while GAS, PVB, PVT and SHB, ACB gained. Pharmaceutical stocks remained more bullish than common market, including IMP, DCL, DHG. Steel stocks are still in focus today and traded relatively sideways, to end the session HPG, VIS, TLH maintained the green color while HSG declined slightly. Notably, the group's liquidity is declining fast compared to the previous session.

Recommendation

VN-Index traded positively today to close at its highest level during the day, accompanied with slightly improved liquidity. Some of market pillars such as VIC, GAS, VNM, MWG maintained the green color, making gains in afternoon trading become more certain. The technical indicators of the VN-Index are improving. RSI and MFI are moving to the overbought territory, Aroon Down declining with MACD negative divergence is about to end. Investors may pay attention to the 690 threshold, if VN-Index surpasses this threshold, the PSAR indicator, MACD and ADX will give a buy signal again. Most likely the cumulative trend of the market will be continued in the 680 – 690, cautious investors are recommended to continue to track movements of the VN-Index while preferred-risk investors can accumulate stock gradually when market sinks during trading session