20161107_BSC_Vietnam Daily Review_EN_Rebound along with regional markets

Highlight

Vietnam's stock market traded in green throughout the session in the context that the stock market in the region and EU increased strongly. Investors around the world are showing optimism when FBI stated that they found no signs of criminal in the new e-mail investigation on candidate Hillary Clinton. Meanwhile, the safe-haven assets simultaneously declined such as gold, government bonds and the yen. On the commodities market, the price of WTI oil recovered when OPEC also announced that Russia is ready for a deal to cut oil production. Ending the session, VN-Index rose to 674.14 points by 7.41 (+1.11%) while HNX-Index also rose by 0.62 points to 81.09 (+ 0.77%). Liquidity on the HSX trading floor is not improved corresponding to the score, the total value on the 2 floor is 2000 billion, put-through transactions accounted for 163.5 billion. Although the market rebounded sharply in terms of scores, but investors are not overly excited, specifically can be seen through that no ceiling price on the 2 exchanges.

Recommendation

VN-Index closed at its highest level during the day together with increase liquidity in Bluechipsuch as VCB, HPG, HSG is a positive sign. However, the liquidity rebound of the whole market does not commensurate with price recovery makes further recovery of the VN-Index could be put in question. Investors should maintain the safe weight of stocks before VN-Index recovers correspondingly with liquidity.