20160701_BSC_Vietnam Daily Review_EN_Good quarter beginning

Highlight

Contrary to the fear that there might be a technical correction in the first day of new quarter after a good rally, VN-Index continued to rebound strongly. With the rebound of oil earlier today after a fall yesterday, GAS returned and joined with VIC, VNM to lift market near 2-year high at 640 pts. HNX-Index also enjoyed the rally while the opposite was true to Upcom-index.

Recommendation

VN-Index surged convincingly thanks to the support from BCs such as VNM, VCB, BVH, CTG and especially GAS, trading volume also increased significantly. VN-Index even reached 643.6 during session, which is even higher than the previous peak level of 641, however, at the end of the session, it closed at 640.3. The technical indicators are in favor of a further increase of VN-Index when the MACD has created a positive divergence, RSI heading to 70 and + DI crossed -DI from beneath and BB started to expand. Also, foreign investors were net buyers is a positive point for the market. Investors may consider increasing the weight of stocks in the portfolio when VN-Index experiences technical corrections.