Market Update [October 11] – VN-Index plunges 48 points in panic
On Thursday (October 11th), the market opened in panic due to negative impact from world markets. There were 94 stocks hit floor on the HSX, including many blue-chips such as MSN, BHN, GAS, BID, CTG, STB…. The highlight of the market was liquidity increased sharply more than 2 times compared to the previous session.
By the closing bell, the VN-Index lost 48.07 points (-4.84%), to close at 945.89. The HSX’s trading volume rose to over 353 million shares, worth over VND7,800 billion. Foreign investors net sold over VND283 billion on the HSX.
In view of technical analysis, the VN-Index’ chart shows a long red candlestick, breaks down MA support (100), and creates a breakaway gap at 970-990 range, which are quite negative. Therefore, we believe that, the current market risk is very high, investors should keep the stock proportion at a low level and reduce it in technical recovery sessions. In a negative scenario, the VN-Index may test the old bottom in July, around 900 points. In a positive scenario, the 970 – 990 breakaway gap will be the nearest resistance range, at which investors can sell a part of the existing short-term portfolio.
Please see the attached file for more details.