20161027_BSC_Vietnam Daily Review_EN_Unclear trend

Highlight

VN-Index recovered slightly today after falling to 671 points. Ending the session, VN-Index rose by 3.29 points to 676.90 (+0.49%), the HNX-Index also rose by 0.43 points to 82.69 (+ 0.52%). Notably, liquidity continued to decline today as only 120 million shares were traded on both exchanges equivalent to trading value of 1956 billion. Positive point on the trading session today is next to ROS, a couple of other Bluechip have helped VN-Index recovered in the session in the green such as VCB, VNM, VIC, GAS. In today trading session, except VCB gained, banking group still weakened, including BID, CTG, STB. Oil group has traded a bit better when WTI oil price rose slightly. Actively traded in today's rubber group consisting of PHR, DPR, TRC when natural rubber prices have rebounded by 70% over the same period last year and positive Q3 earnings of this group. Real estate group also traded positively with VIC, HBC

Recommendation

The market closed at its highest level during the day due to the recovery of some of Bluechip, including ROS ceiling. However, liquidity continues to decline showed that the rebound in trading today is not solid. The technical indicators have not improved much. VN-Index is currently trading close to EMA 45 and is expected to fluctuate in the 670 - 690.- Investors can sell stocks in case the VN-Index increases to 690 and buy in partially shares if VN-Index retreates to near 670.