Market Update [October 03] – VN-Index passes 1,020 with modest gains
On Wednesday (October 3rd), advancing in the morning and declining in the afternoon scenario repeated again. In particular, the highlight of the market was banking stocks, rebounded at the end of the session, helping the VN-Index hike. Adversely, VHM reduced sharply, impacting negatively on the index.
At the end of the session, the VN-Index rose 1.61 points to close at 1,020.40. The HSX’s trading volume fell to 170 million shares, worth more than VND4,000 billion. Foreign investors net sold VND44 billion on the HSX.
Technically, the long-term resistance range of 1,020 – 1,030 is still a big challenge for the VN-Index, reflected by the forming of doji candlestick in the graph of VN-Index, showing the strong volatility at the barrier. Therefore, we believe that, in a negative scenario, if the index loses the nearest support of 1,017 points, or MA (5), the next support level of the VN-Index is forecast at 980 – 1,000 (including MA (20) and psychological support level of 1,000). In a positive scenario, Vn-Index will test the long-term resistance range of 1,020 – 1,030 (including MA(150) and MA(200), or 1,025 and 1,027 respectively), at which investors can sell a part of the existing short-term portfolio. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.
Please see the attached file for more details.