BSC - Vietnam Daily Monitor 2015.08.20 - The stock market to find new bottom

Summary

The market fell sharply today due to the fall of the Oil & Gas stock facing the bear oil market risk. The other sector, such as banking, securities, insurance, real estate and technology stocks, followed declining that made the market breadth narrower. Foreign investors remained net sellers on both exchanges.

Recommendation

We change the opinion of the VN-Index support from 570 to the range betwenn 550 and 554. The two recent negative factors which are the loosening of foreign investment rule and the bear market of oil and gas are the main reasons for our assessment. Market indices continue to determine the new bottom. Risk-averse investor should be cautious in the short term. Risk loving investors could consider open position in big discounted stocks.