20161014_BSC_Vietnam Daily Review_EN_Has not surpassed 690 yet

Highlight

The morning session was quite excited when the VN-Index traded at around 690 points. However, in the afternoon session, VN-Index pared gains after many Bluechip reversed, including VCB, HPG, GAS, BVH. However, VNM, BID and MWG maintained the green, helped VN-Index close higher than the previous session. Ending the session, VN-Index rose by 1.77 points to 687 (+ 0.26%), HNX-Index gained 00.11 points to 85.45 (+ 0.13%). Market liquidity improved with about 218 million shares changing hands, equivalent to 3900 billion (+ 17%), of which there are 1240 billion put-through transactions. Steel stocks weakened today with HPG, NKG, TLH declined, HSG stood at refence and VIS gained. Natural Rubber (DPR, PHR) has rallied. In addition, cash flow continued to return good fundamental stocks such as NNC, LBM, DGC, C32, KSB, CVT, CTD. Notably, the speculative stocks also rose but with divergence. While FLC, HHS corrected, TCH, ROS, HVG, OGC, BGM were still rising. HNG and HAG also suddenly went ceiling today.

Recommendation

The market rose slightly in between the resistance and support as expected in the previous report. Improved liquidity and the technical indicators are returning to positive territory is a good signal for the market in the next session. The money is coming back to the good fundamental stocks and this is expected to continue in the next session. Investors with portfolio including stocks with good Q3 results are recommended to hold