20160810_BSC_Vietnam Daily Review_EN_Rise in doubt

Highlight

The market had an impressive rally (+10.99) along with liquidity significantly improved with 157 million shares traded, equivalent to about VND 2.600 billion on both exchanges. Almost all sectors gained, of which the most prominent is Real estate, Constructional materials and Steel. Bluechip led the market as VIC, VNM, HPG, BVH, VCB, BID, HSG continued to attract cash flow and maintain a good growth in most of the trading session.

Recommendation

Market index returned 640 which lost at the same time last week, closer to the next resistance level of 650 points. Although the technical indicator MACD has not showed trend again, RSI (15) sustained increases in the past three sessions. As such, market bottom established at 630, a rising trend line established from the bottom showed that the market still maintains long-established upward trend from earlier this year. The market is likely to return to 650-660 points during the next session, after gaining more than 26 points from the bottom. The money is returning to the basic stocks and large cap accompanied by increased trading volume. Investors may consider re-participate in the market when the VN-Index turnback are confirmed.