Research Center

Data in August showed that the economy continued to recover further but at a more modest pace. Overall, export-import and industrial sectors saw further improvements, while the exchange rate and inflation remained highly stable. On the other hand, the disruption in FDI inflows put high pressure on the Government about how and when to open the sky. We assume a business-as-is scenario and expect the further improvement of the economy in September.

820–825 pts is identified as the significant zone for the intraday bullish resumption. Thus, traders should be captured the long at 820-825 pts zone, take a profit at 865 pts and stop a loss at 812 pts.

The short-term uptrend is still intact because of the optimistic market sentiment. The target is a zone 910-930 pts due to the breakout of the downward channel. Therefore, traders should increase their long position and focus on leading stocks.

820–825 pts is identified as the significant zone for the intraday bullish resumption. Thus, traders should be captured the long at 820-825 pts zone, take a profit at 845 pts and stop a loss at 812 pts.

Base on the sharp gaining session, the short-term uptrend is confirmed again. The target is a zone 910-930 pts due to the breakout of the downward channel. Therefore, traders should increase their long position and focus on leading stocks.

Because our year-end target for the VNIndex is still between 900 - 1,000, assuming that interest rate remains low and the economy recovers markedly, we expect to see the bullish scenario in September. Of note, FOL stocks may be the best performers given the consistent strong foreign inflow into VFM VN Diamond and SSIAM VN FinLead ETFs.

Vinh Hoan recorded VND629bn revenue in Jul 2020, decreasing 9% yoy, which were mainly hit by the decrease of export revenue to the U.S. (-16% yoy), China (-13% yoy) and rest of world excluding the U.S., EU, China (-20% yoy), due to the weakening demand of restaurant channel amid pandemic. However, Vinh Hoan’s export volume to the U.S showed sign of recovery as we estimate Vinh Hoan’s export volume to this market rebounded to Jul 2019’s level.

810–820 pts is identified as the significant zone for the bullish resumption. However, risk/reward ratio is unfavorable for the long at this zone. Thus, traders should be captured the long at 805-810 pts zone, take a profit at 835 pts and stop a loss at 790 pts.

In the short term, the uptrend is still intact due to confirmation of the VNIndex. The target is a zone 910-930 pts due to the breakout of the downward channel. Therefore, traders should increase their long position and focus on leading stocks.

Last week, selling activities ticked up, recorded at a 4-month high. Breaking down by sectors, Financials, Real Estate, and Materials were sold the most whilst Energy attracted the most foreign demand across the market. Regarding to ETF flow, Vietnam became the main driver for the maintenance of positive flow across SEA, thanks to VFMVN30 ETF and VFMVN Diamond ETF which attracted the total of USD10mn last week despite the outflow of Premia MSCI Vietnam (USD2.3mn).