Published Date: 25/11/2014
Both indices declined with lower volumes as compared to that in the last week. The VN-index decreased 12.33, closing at 588.03 and the HNX-index decreased 1.6, closing at 89.14 at the end of the week.
The market was negatively impacted by circular No 36/2014/TT-NHNN. Investors were concerned about the decrease of available cash flows into the market after the State bank of Vietnam issued regulations in circular No 36/2014/TT-NHNN, limiting commercial banks to make loans for stocks investment. In detail, commercial banks with nonperforming loan rate over 3%, are not allowed to make loans for stocks investment. Commercial banks are not allowed to make loans for stocks investment over 5% their chatter capital.
However, we think that the State bank of Vietnam would like to limit speculative cash flows into the market to create bubble. Besides, the State bank of Vietnam would like to urge commercial banks to settle their nonperforming loans.
In the week, net selling value by foreign investors was VND 307 billion on the HSX. Main tickers sold included KDC, MSN, VIC, GAS and DPM… In November, net selling value by foreign investors was VND 516.8 billion. Foreign investors have sold stocks strongly over the last few weeks thereby reinforcing the impact on the market.
From a technical view, the VN-index is on a down trend as failing to test the resistance at 605 (the MA100). The index crossed above the MA20 and approached the MA 200, equivalent to 588. In general, the index is on a down channel and is likely to test strong supports at the MA200 (588), the Fibonacci Retracement 50% (575), the MA300 (560) in coming sessions. However, we still positive in long term thanks to improvement in the economy. We recommend investors to buy tickers that have good business prospect such as HUT, SSI, KBC, L10, TNG, TCM, PET, DHC, CNG, PPC and REE…