20161209_BSC_Vietnam Daily Review_EN_Large put-through on SAB

Highlight

VN-Index maintained the green color throughout the trading session mainly thanks to SAB and several oil and gas stocks rose when WTI oil prices rebounded such as GAS, PVD. Although VN-Index higher but the green color was not spreading over th whole market when the market breadth is low with decliners overwhelmed advancers. Market liquidity also declined with only 80 million shares traded on the HSX equivalent to trading value of USD 1595 billion. Ending the session, VN-Index up to 663.07 points (+ 0.63%) while the HNX-Index up to 79.61 points (+ 0:31%)

Recommendation

VN-Index continued to maintain higher but mainly due to the large demand on SAB. Meanwhile, the largecap stocks could not keep green and liquidity continued to weaken. Notably, liquidity and VN-Index are creating divergence, making bearish reversal risks still remain high. The technical indicators have yet to be improved and has not confirmed the downward trend has ended. Investors are recommended to maintain high cash rate.

Investors prefer risk may be mindful of EUR levered business such as NT2, BCC, HT1 when the time that Federal Reserve to raise interest rates decision is approaching. If this happens, the pressure on the euro continues to rise, and it is more likely that the euro will continue to depreciate.