Research Center

Based on the optimistic sentiment, short-term uptrend is dominant. Thus, traders should hold their long position and focus on leading stocks.

Long positions captured at 995 pts zone should not be closed, riding the bull until it ends and out the positions when 995 pts level is broken.

We upgrade to BUY following inclusion of FE Credit IPO at TP of VND 37,033. Since the third virus spread in Vietnam is contained promptly and we believe that all sides have been included COVID-19 variable into modeling, our base case assumption is that VPB is able to divest 49% stake of FE Credit at 3.00x PB in 2021.

Long positions captured at 995 pts zone should not be closed, riding the bull until it ends and stop a loss when 990 pts level is broken.

Despite the contraction, the short-term uptrend is dominant as the VNIndex closed above all significant thresholds. Thus, traders should hold their long position and focus on leading stocks.

Excess liquidity in the banking system, due to a slowdown in bank lending, has been driving interbank rates and G-bond yields to historic low levels, of which some rates have stayed near-zero level for a long time. However, a surge in credit growth in November may give an early signal that liquidity conditions in the banking system would not as easing as before, which could reverse a super low-rate environment in the fixed-income markets.

Last week, selling activities slowed down. Breaking down by sectors, selling activities focused on Industrials, Consumer Discretionary, and Utilities whilst Real Estate, Financials, and Consumer Staples were accumulated the most. Regarding to ETF flow, Vietnam maintained the positive flow of money thanks to VFMVN Diamond ETF which attracted the total of USD24.2mn last week.

Buy VN30F2012 at 994-995 pts zone, take a profit at 1,000 pts and stop a loss when 990 pts level is broken.

The market sentiment has become optimistic in the short term, implying the uptrend of VNIndex. Thus, traders should hold their long position and focus on leading stocks.

We raise our target price (TP) for MSN share by 27% to VND94,000/share but downgrade to Hold from BUY as MSN share price has jumpt by 62% over the last two months. Our TP increase is driven by rolling price recommendation to the end of 2021 and the increase of our estimate for Masan Group’s 2021 NPAT post-MI on the back of higher earning forecasts for all four core business segments.