BSC - Vietnam Daily Monitor 2015.08.13 - Stock market uncertainty

Summary

Concerns about the policy changes of China central bank, PBOC, continue to negatively impact the market performance, prompting VN-Index a sharp decline to below 600 points. Market breadth narrowed, the key stocks plummeted. However, the positive note is that foreign investors remained net buyers on the floor, excluding net sales of VNM ETF funds (estimated VND 45 billion).

Recommendation

Market prospects in the next session remained quite uncertain when the market is still under influences of negative information. However, after the previous strong declines, the index may have technical rebound in the upcoming session. Risk-seeking investors stop the bottom fishing activities. Risk averse investors continue to observe the market, waiting for opportunities in medium and long term at the lower price ranges.