20160530_BSC_Vietnam Daily Review_EN_Which support for tomorrow

Summary

The market had a surge as circular 06, amending and additional to circular 36, had strong impact on real estate and banking stocks with leaders were VIC and VCB. After sideway period, securities stocks showed its acceleration. Besides, today was the first day that intraday data of the selling orders of foreigners on HOSE was released . VN-Index rose to near the resistance level of 615 points while other Asian markets also gained. The increase of volume and value of transactions with significant net buying of foreign investors was also positive point today. HNX-Index and UPCoM-Index were also up despite the volume and value of transactions remained low. Foreigners net bought strongly on HOSE, as well as were net buyers on the HNX and Upcom.

Recommendation

Circular 06 improved investor sentiment and particularly boosted real estate stocks. However, the possibility of longer short-term bullish market remains under a question when Blue-chips have slown down and there was no clear signal of reversal. In this context, investors should not increase the proportion of the portfolio.