Research Center

As mentioned above, investors should wait for the confirmation signal. Until then, they should hold a long position and focus the leading stocks such as Energy and Banking.

Based on the optimistic market sentiment, the uptrend of the VNIndex is still intact. Therefore, investors may be held their long position and focus on leading tickers.

Long positions captured at 855 pts area should not be closed, take a profit at 870-875 pts and out the positions at the break-even point (855 pts).

On 01 Oct, Vinamilk released preliminary 3Q20 business results, which highlighted more optimistic earning growths than those of previous quarters. Particularly, Vinamilk estimates consolidated revenue to reach VND15,561bn (+8.8% yoy) and consolidated NPAT to reach VND3,106bn (+16% yoy).

Although we expect the current rally of the market will continue in the rest of this year (because the VNIndex is trading at 15x its earnings, lower than 16x of 2019-end, while interest rate is lower), the pace will be slower and range trading may be more appropriate for the time being.

In the short term, the uptrend of the VNIndex is still intact. Therefore, investors may be held their long position and focus on leading tickers.

Long positions captured at 855 pts area should not be closed, take a profit at 870-875 pts and stop a loss at 850 pts.

Based on the selling pressure, the downside risk increases in the next session. However, the uptrend of the VNIndex is still intact. Therefore, investors may be held their long position and focus on leading tickers.

Long positions captured at 855 pts area should not be closed, take a profit at 870-875 pts and stop a loss at 845 pts.

An amendment of Cir.01 with the extension of debts subjected for restructuring may be finalized and announced soon in Oct 2020. This may provide credit institutions a leeway to further assist severe impacted debtors and enables them to contain NPL ratio and credit cost in 2020 and 2021 at manageable levels. We maintain Overweight on the sector.