Market Update [October 05] – VN-Index falls 15 points due to high selling pressure

05/10/2018 16:47

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Friday (October 5th), high profit-taking pressure led large-cap stocks to plummet, impacting negatively on the index. Particularly, oil & gas stocks fell sharply after negative news from oil prices.

At the end of the session, the VN-Index dropped 15.23 points, to close at 1,008.39. The HSX’s trading volume rose to 300 million shares, worth approximately VND11,600 billion. Foreign investors net bought nearly VND7 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a long red candlestick with the closing price is the lowest price in the session, is negative. This suggests that the downside momentum will continue in the coming days. In addition, the losing of three support levels of MA (5), MA (10) and MA (14) is quite negative. Therefore, we believe that, in a negative scenario, if the index loses the nearest support level of 1,003, or MA (20), the next support range of the VN-Index will be forecast at 990 – 1,000. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 1,010 – 1,020, 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.