20170116_BSC_Vietnam Sector Review_EN_2016

SECTOR INVESTMENT STRATEGY 2016 REVIEW
1.  Review of stock market and 2016 sector outlook assessments
To review the accuracy and efficiency of recommendations of BSC in Outlook 2016 Report, we consider factors including: (1) The 2016 stock market movements; (2) sector investment strategy, as followed:
(1)    2016 Stock market movements
•    About the point: VN-Index in January, April and May closed at the level which is quite close to BSC’s forecast,  in which the deviation didn’t exceed 1 percent..
•    About the market’s happening.
•    Performance by stock groups:
•    About information affecting VN-Index and stock market in 2016.
(2)    Investment strategy by sectors in 2016
About remarkable investment themes in the year 2016. In BSC’s investment strategy report, 5 investment themes were mentioned. We evaluated these themes at the end of each quarter and added 2 more investment topics in our quarter outlook report in the third and the fourth quarter of 2016. In restrospective, most of the topics discussed by BSC has predicted relatively accurately the market fluctuation and was the main scenario throughout the year.
•    “Firtsly, real estate market recovered with a higher liquidity.
•    “Secondly, Free Trade Agreements”.
•    Thirdly, the effect of materials’s price.
•    “Fourthly, stocks influenced by state divestment or full-room for foreigners”.
•    “The fifth, fundamental stocks, dividends are high and stable, low beta can be the target of cashflow”.
•    “The sixth, opportunies from Upcom”.
•    “Seventh, Climate Changes”.
•    With industries that has the Best growing potential in 2016 - the steel industry BSC has a Market perform perspective in our quater reports in 2016. In the year, BSC continues to update  the development of notable corporation business results of the industry such as HSG, HPG, NKG, and SMC, and recommend buying HSG, HPG and NKG.
•    Some industries have developments that are against our expectation in the 2016 report, including textile sector and seaport sector because TPP is unlikely to pass. In addition, fertilizer industry, with unfavorable weather conditions, and increasing competitiveness makes sales price fall faster than the input price, leading to developments worse than we expected.
•    In 2016, BSC is one of the foremost unit in the market that reguarly updated its investment perspective of the rubber industry (March when the rubber price was at borrtom, and October before the rubber industry shares increase strongly), brick industry (April), and coal industry (November). When these industries have not yet attraced investors, BSC has reported the positive outlook right before the high growth period of these industries.  Beside that, BSC also had reports updating all important events that have a throughout impact on many industries such as 06 Circular report, El-nimo reports, Product price fluctuation report, Beer industry report and Top 30 UPCOM report.