Weekly Wrap: Consolidation likely to continue in the short term

Weekly — June 15

The VNI posted a 4-month closing high of 900 on June 10 but was caught up in the regional/global downturn to close down -2.6% on the week. A correction is perhaps not overly surprising given the nearly vertical run since March that had pushed the index up against another “big number” (i.e., 900) as well as its 200-day moving average at 910. VNI breadth shifted to negative for the first time in 7 weeks, with 224 losers vs 140 gainers. It was worse among big-caps, with only 5 VN30 gainers.

Index, Flows, and FX Performance
 VNINDEX: 864 (-2.6% WoW / -10.1% YTD / -9.5% YoY)
 HNINDEX: 117 (-1.0% WoW / +14.0% YTD / +12.9% YoY)
 UPCOM Index: 56.0 (-0.9% WoW / -1.1% YTD / +1.5% YoY)
 Average daily turnover: US$373mn (+34% WoW)
 Foreigners net bought (!!!) US$10 million of 3-index constituents.
 VND:USD rate: 23,206 (+23bp WoW / -14bp YTD / +53bp YoY)