Published Date: 11/04/2012
The market advanced strongly as the securities and real estate shares rebound. The hike of these shares supported the market solidly. The market buoyed by the investor's sentiment when almost investors bet their money on "hot" stocks at higher price. During the trading session, the short side limited their selling orders. Consequently, the supply limit hit the price's incline and lower volume. We viewed the downtrend was reverse, but the volume indicator did not confirm the reverse trend.
According to GSO, the industrial inventory index increased by 34.9% YoY. It implied that the economy was in stagnation phase. In addition, the 1Q2012 business confidence index stayed around 6% lower than 34% in 4Q2011. It indicated that the Vietnam enterprise outlook is not bright. We viewed that if small bank liquidity is not resolved in 2Q2012 and interest rate level maintained higher, the Vietnam economy will face difficulty to recover.
We took cautious view when the volume was lower regardless of bullish session. In addition, the gloomy earning outlook for some sectors will not support the strong uptrend. We recommend the investors should reduce stock position during bullish session and limit using margin services.
TheInvestorDaily_030412_E.pdf
