Market Update [October 04] – Cash flow spreads out, VN-Index rises 3 points

04/10/2018 17:04

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Thursday (October 4th), although sideways trend was still dominant, but cash flow had spread out to many sectors. Particularly, the market-sensitive stock groups such as securities, oil & gas, textiles, construction, real estate,… all showed good growth, creating positive sentiment to the market.

At the end of the session, the VN-Index gained 3,22 points, to close at 1,023.62. The HSX’s trading volume rose to 200 million shares, worth approximately VND4,700 billion. Foreign investors net sold nearly VND436 billion on the HSX.

In view of technical analysis, the weekly chart is supporting for the uptrend of VN-Index, moving up to the resistance range of 1,040 – 1,050 points. However, in the daily chart, the threshold of 1.020 – 1.030 is still hard to break out, at which investors can sell a part of the existing short-term portfolio. Therefore, we believe that, in a positive scenario, if the threshold of ​​1,020-1,030 is broken out, the next resistance zone of VN-Index will be forecast at 1,040 – 1,050. In a negative scenario, if the index loses the nearest support of 1,018 points, or MA (5), the next support range of the VN-Index is forecast at 980 – 1,000 (including MA (20) and psychological support level 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.