Market Update [October 08] – VN-Index closes below 1,000

08/10/2018 17:05

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Monday (October 8th), the VN-Index recorded the second consecutive sharp drop. The highlight of the market was banking stocks, simultaneously rose in the morning session, creating motivation for the market recovery. However, the momentum of this group was quickly extinguished in the afternoon session.

At the end of the session, the VN-Index fell 12.27 points (-1.22%), to close at 996.12. The HSX’s trading volume remained high with more than 200 million shares, worth approximately VND5,100 billion. Foreign investors net sold more than VND127 billion on the HSX.

In view of technical analysis, the short-term support level of 1,004, or MA (20), has been completely broken, indicating that the VN-Index has started a short-term downtrend. Therefore, we believe that, in a negative scenario, the nearest support range of VN-Index will be forecast at 980 – 990 (including Senkou Span B, MA (50), the lower Bollinger Band and Kijun-Sen). In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 1,000 – 1,010, at which investors can sell a part of the existing short-term portfolio. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.