20160624_BSC_Vietnam Daily Review_EN_Stable after storm_Company Updates NT2 and BCC

'Highlight

The referendum on United Kingdom membership of the European Union published the results for each location along with the preliminary results had the turn from Bremain to leave votes. This sudden shift in early morning made the major stock markets tanked. The result out of most expectation happened, Pound dropped by 10% against the dollar while Asian stocks plunged. Under the impact of the UK vote, Vietnam market opened slightly lower but till 10:30 am when results began leaning on Brexit, VN-Index started falling. Till afternoon session when the leave was almost certainly irreversible, VN-Index fell sharply under 600 pts. Almost immediately when the market was oversold, money flowed into the market to help recover by 20 pts to finish one of the most volatile trading session. Selling pressure also appeared on the HNX and Upcom made two indicators suffered the losses. Soaring liquidity on exchanges was understandable in this session but investors seemed to overreact to a macro shock.

Recommendation

As we expected, the VN stock market today experienced very active trading activities, trading volume rose sharply due to the impact from the Proposed referendum on United Kingdom membership of the European Union. The foreign exchange markets, debt markets and stock markets were showing a general sentiment that needs to escape risky assets were rising and instability are very high (USD, JPY soared, government bonds of countries with high credit rating such as Germany, France, the USA fell sharply, while government bonds with low credit rating such as Greece, Portugal, Spain increased sharply, rising spot gold price, key stock markets plunged, rising CBOE VIX).VN-Index has declined dramatically and at some point close to 4.8% as the sentiment that demand fled from risky assets spread to Vietnamese investors. However, the decline was slowed down and the VN-Index recovered impressively during the session (rebounded 23 points) when the referendum results finalized.

Company Updates - NT2 - PetroVietnam Power NhonTrach 2 Jsc. (HOSE)

Company Updates - BCC - Bimson Cement Jsc. (HNX)