Market Update [October 02] – VN-Index rises as large caps rally

02/10/2018 17:10

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Tuesday (October 2nd), the VN-Index hiked with a poor breadth, in which decliners outnumber advancers by 179 to 119. While the market-sensitive stocks such as securities, real estate, construction, steel,… declined, adversely, the large-cap groups including VIC, BID, VHM, GAS, TCB, VCB,… advanced, contributing mainly to the gain of index.

At the end of the session, the VN-Index gained 5.91 points to close at 1,018.79. The HSX’s trading volume increased sharply to approximately 360 million shares, worth more than VND17,300 billion. Foreign investors were net buyers for more than VND10,340 billion on the HSX, attributed largely to the negotiation of MSN (VND10.121 billion) and DHG (VND274 billion).

Based on the moving of technical indicators, we believe that, in a positive scenario, the Vn-Index will test the long-term resistance range 1,020 – 1,030 (including MA(150) and MA(200), or 1,026 and 1,027 respectively), at which investors can sell a part of the existing short-term portfolio. In a negative scenario, if the index loses the nearest support 1,015, or MA(5), the next support range of VN-Index is forecast at 990 – 1,000 (including MA(20) and psychological support 1,000). Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.