20161108_BSC_Vietnam Daily Review_EN_Wait for news

Highlight

Trading of market is quite exciting at the beginning of the session when it gained more than 3 points before narrowing the rise in the middle and afternoon session. The market liquidity continued to stay low and excitement no longer present on the 2 floors. Investors are showing cautiousness before the US presidential election results published tomorrow. Ending the session, VN-Index rose to 676.46 by 2.32 points (+ 0.34%) while the HNX-Index also rose to 81.26 by 0.17 (+ 0.21%). Liquidity on HSX improved slightly, the total trading value on both exchanges was approximately 2225 billion, put-through transactions accounted for 383.8 billion.

Beer stocks continued to be the focus of the market today when they simultaneously increased in both price and liquidity (BHN, BSP, SMB, WSB, HAT, THB). Stocks of natural rubber also traded quite active with PHR, DPR. Trading on Steel stocks and bank are no longer as exciting as the previous session. ROS officially exceeded 100 today and were the largest contribution to maintain the green for VN-Index. The large-cap stocks gained such as VNM, HPG, MWG, VCB, GAS, BVH also helped VN-Index gained slightly.

Recommendation

Trading sentiment on session 11.09 will be affected somewhat from results of the US presidential election. BSC's view is that the US presidential election has influence on the psychological as well as market developments.

- If Hillary is elected, it will be positive in the short-term, help pull the money back into the market after the correction from the top. VN-Index back to test top 690 and can set a new peak for the year.

- Mr. Trump is elected is not very good information, market sentiment will drag the market decline. VN-Index lost 650 points and it may be more negative before stabilizing.

In the context of potential unexpected market developments, investors should keep low stock exposure and wait for clearer trend of VN-Index