Weekly Wrap — August 3: Uncertainty abounds

Weekly — August 3

The VNI closed down 3.7% in the week ending July 31 amid volatility driven by the renewed outbreak of COVID-19. The VNI has declined 7% from the prevailing levels before the virus reoccurrence, but most of that fall occurred on the first two days following the news of the outbreak. Also, foreigners have returned as net buyers, which we see as a positive. We don’t want to downplay the risks, but our sense is that the market is not likely to retest its March lows.