20161219_BSC_Vietnam Daily Review_EN_Financial stocks surge

Highlight

The highlight of the session is put on the first correction of SAB and cash flown to the financial services group including banking, insurance and securities. VN-Index traded in the green for most of the session despite the first correction SAB took away more than 3 points of VN-Index. By the end of the session, SAB slumped more and some other blue chips also corrected such as MWG, VNM, MSN made VN-Index fall slightly despite positive gains of the financial stocks (BID, CTG, BVH) and VIC. Ending the session, VN-Index fell by 0.83 points to 674.33 (-0.12%), whereas HNX rose by 0.23 to 79.94 points (+ 0.28%). Market liquidity returned to the average level of 107 million shares traded on the HSX corresponding to transaction value of 1894 billion.

Recommendation

Although VN-Index in the beginning of the week decreased but the market still shows certain positive points such as stable liquidity, positive breadth and cash switches among industry groups. The technical indicators remain positive, open opportunities for VN-Index to continue to rally back to the 680 of the VN-Index. Investors may pay attention to the stocks showing signs of bottoming and recovery such as steel (HPG, HSG) and banks (BID, CTG, CTG), take profit on rubber stocks and oil and gas stocks. Investors may also buy in gradually good fundamental stocks which are expected to have positive results in 4th quarter.