20161025_BSC_Vietnam Daily Review_EN_Rebound still on hold_TA - CAV

Highlight

VN-Index continued correction today as previously forecasted because the Bluechip such as VCB, BID, CTG, MSN opened in the red. At one point, VN-Index went down to the 670 before bouncing back. In afternoon session, some fundamental stocks and Bluechip recovered helped VN-Index narrow the decrease. Ending the session, VN-Index fell by 1.84 points to 676.18 (-0.27%), HNX-Index also fell by 0.06 to 82.82 (-0.07%). Trading volume declined slightly compared to the previous session with about 165 million shares changed hands on the two bourses equivalent to trading value of 2637 billion. Steel stocks and banks corrected sharply with stocks such as CTG, VCB, BID, STB and HSG, NKG, HPG, SMC. Oil and gas stocks including PVD, PVS, GAS although corrected intraday but recovered in late trading. Speculative stocks traded mixed with OGC, HNG, ROS rose while HHS, TNT, FLC fell. Notably. The money is withdrawn from the speculative stocks and shifted into fundamental stocks

Recommendation

Markets kept 673 level by some bluechip rally such as ROS, VNM, CTD, GAS, helped narrow decline. However, banking stocks continue to correct and market sink was halted largely due to ROS are unsustainable factors for the recovery. The technical indicators have not improved. Therefore, investors are recommended to observe the market when the VN-Index not have many opportunities to return to the range 680-690, investors prefer risk may accumulate shares if VN Index corrects to 670-673.

Technical Views - CAV - CAV - Vietnam Electric Cable Corporation (HSX)