20160803_BSC_Vietnam Monthly Review_EN_2016M08

Macroeconomics
•           PMI reached 51.9 points, down from 52.6 in July, although still indicated the continous expansion of manufacturing activity for the eight executive months.
•           Sales of retail and services maintained the positive momentum with a decent yoy growth of 9.4%. July CPI continued the upward trend, increasing by 0.13% mostly due to the increase in price of transport, housing and construction materials.
•           FDI continues to be a bright spot, with the implementation value of $ 8.6 billion, up 15.5% yoy. Industrial processing sector accounted for 70.5% of registered capital.
•           The trade balance yielded $ 100 million surplus, after 2 months of deficit. Accumulatively 7M2016 generated trade surplus of USD 1.8 billion.
•           USD/VND fluctuated around the quoted exchange rate of 21,853. The interest rate remains stable, with 1-month rate decreased while less than 1 month rate had a slight rise.

Stock Market
•           The two floor showed opposite performance in July: VN-index maintained the upward momentum, while HNX declined
•           Liquidity in July reached VND 3,505 bil/day, up 14% mom and at the highest 1-year level. The main driver was domestic investors boosting up trading activities.
•           P/E of VN-Index and HNX-Index was respectively 15.01 và 9.54, maintaining their rankings in the region from last month.
•           July saw a strong net buying of foreign investors, which amointed to VBD 1,278 billion (VND 1,208 bil in HSX and VND 70 bil in HNX)

August Market Overview
Market is expected to continue the technical adjustment trend for the first half of August,followed by upward trend in the second half. VN-Index ranged in 600-650 points. Important support levels are 630 and 610 points, while resistance level are 650 and 680 points.
Investment recommendation for August and details of our recommended stocks could be find in the following reports:
•           Stocks with strong second quarter earning results and positive business outlook with appropriate adjustment in price level.
•           Stocks in sectors with positive prospects, including Real estate, Construction, Building Materials, Port, and Power;
•           Stocks with good fundamental basis, high dividend and low beta;
•           In long-term, BSC’s stock recommendation could be find in our 3Q sector  outlook report (Link), stocks with positive changes  recommended in our weekly report(Link) và corporate reports (link).