Market Update [October 10] – Poor breadth, VN-Index loses over 2 points

10/10/2018 17:24

Report: Market Update
Source: ASEANSC
POOR BREADTH, VN-INDEX LOSES OVER 2 POINTS

ASEANSC’S VIEWPOINTS:

On Wednesday (October 10th), the VN-Index recorded a slight decline with a poor breadth, in which decliners outnumber advancers by 175 to 109. The highlight of the market was textile stocks, fell sharply in the afternoon session. TCM ticker and TNG ticker even hit the floor.

By the closing bell, the VN-Index lost 2.23 points (-0.22%), to close at 993.96. The HSX’s trading volume reduced slightly to over 190 million shares, worth over VND4,300 billion. Foreign investors net sold over VND350 billion on the HSX.

In view of technical analysis, the 78.6% fibonacci retracement level has been completely broken. 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.