BSC_Daily report 26.02.2015_VN-Index will mostly hover around the area of 590-600 pts

The market remained strong differentiation among stocks, especially in ones with large foreigner’s buying. Except banking stocks, the blue chips were quite weak. Generally, foreign investors are still the main factors supporting the market during this period. Foreign investors are believed to continue buying until the weekend; their performance will be then harder to predictable after that. Meanwhile, the declined liquidity from the previous day has shown that the recovery is still weak and unreliable. The 600 pts is considered by many a strong resistance but if foreign investors keep their buying, it’s possible for the VN-Index to hover around the area of 590-600 pts.

We maintain our view in the previous report. Investors should consider limiting to open new long positions and reduce the stock portfolio to safe ratio.