BSC_Daily report 04.02.2015_Investors should remain cautious and watch for more market developments in the next days_VNE Updates

After the "shock" from banking stocks yesterday, it was quite understandable when the market sentiment became really "hesitated" during the morning session. The rebound in the afternoon session was derived from the somewhat more stable sentiment after the morning testing time. Besides, many large blue chips recovering quite well has supported for the market. Liquidity continued to shrink reflecting the investor’s high "caution" before too many unpredictable events happened This "caution" will likely to remain for days before the current risky and unpredictable factors, so investment opportunities in short term are not appreciated.

RECOMMENDATION

A technical recovery for only one day with low volume cannot confirm that the market decline has ended. We believe that investors should remain cautious and watch for more market developments in the next days. Investors should consider limiting opening new long position. If open long position, investors should keep with low stock ratio, and focus on the good fundamental stocks with prospective business outcomes.