BSC - Vietnam Daily Monitor 2015.08.25 - Potential risks in the upcoming session

Summary

The market fluctuated strongly as the international stock markets recovered. At closing, the two major indices rebounded thank to the recovery of large-cap stocks, especially insurance and banking stocks. Market breadth was balanced. Foreigners sold a net value of 54 bil VND on HSX. They sold a negligible net value on the two remain bourses. Breaking news: Better late than never, PBoC has cut the reserve requirement ratio by 50bps & cut the benchmark 1y lending rate by 25bps to 4.6%.

Recommendation

Markets might become negative tomorrow. The latest news from China might negatively affect the international stock market as well as the international forex markets. Investors should be more cautious tomorrow, and observe the changes in international capital markets.