20170116_BSC_Vietnam Sector Outlook 2017_EN

Investment Strategy 2017
The stock market has adjusted towards the end of 2016 and the adjustment is expected to remain until first half of Feb 2017. Psychological effects from the newly listed stocks will bring fresh air to the stock market in 2017. In terms of macroeconomics, stock market, and prospects of sectors and businesses, BSC expects 2017 will be a year full of exciting and attractive investment opportunities, as a series of OTC to be listed. On the other hands, some large-cap fundamental listed stocks, which has been out of favor in recent years have returned to attractive levels and could be a safe destination for cashflow. Of course, opportunities always accompany challenges, requiring investors to be more selective in the investment process. To help investors with a comprehensive perspective, BSC issues the 2017 Annual Sector Outlook report to review the investment themes of 2016, and provide outlook for each sector in 2017, along with our prospects on macroeconomics and economic cycles. We hope to assist investors in the journey of exploring investment opportunities, with reasonable price and selective risks.
1. Remarkable investment themes in 2017
The stock market is always changing and every year there will have a special bright spot, just like Oil & Gas in 2014, Banking in 2015 and Steel in 2016. Since 2015, BSC has started highlighting the investment themes in our annual report outlook, and in retrospective, we find that most of them are all important milestone of the year. The 2016 ended with strong wave of listed firm on OTC. Will this wave be continuing? And is there any highlight for 2017? Based on global and domestic economy, along with current market situation, BSC believes that the following topics should be noted in 2017. The macro and stock market have not been favorable and stable in recent period, making it even more difficult to predict the market, but there are still opportunities for investors. We summarize our views through 6 following topics.
2017 Investment themes
•    Firstly, opportunities will be continuing with to-be-listed stocks on OTC.
•    Secondly, group of state-run enterprise which is in the process of equalization.
•    Thirdly, stock group of state divestment or full room.
•    Fourthly, group of stocks with good fundamental, high dividend and focus on the domestic market.
•    Fifthly, the Free Trade Agreement.
•    Sixth, influenced by the price of raw materials, rising inflation, and the possibility of raising interest rates.