Market Update [October 15] – Liquidity falls, VN-Index loses over 18 points

15/10/2018 17:09

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS:

On Monday (October 15th), the market pulled back due to the negative impact from the Asian markets. Although the profit-taking pressure increased, however, the bottom-fishing cash flow disappeared, causing the market liquidity to plummet, and the VN-Index to close at the lowest level in the session.

By the closing bell, the VN-Index dropped 18.44 points (-1.90%), to close at 951.64. The HSX’s trading volume fell sharply to 144 million shares, worth approximately 3,500 billion. Foreign investors net bought VND65 billion on the HSX.

In view of technical analysis, the bullish reversal pattern called “Piercing Pattern” has been completely failed. Therefore, we believe that, in a negative scenario, the nearest support range of VN-Index will be forecast at 920 – 940, the next support level is expected at 900 points. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 960 – 980, at which investors can sell a part of the existing short-term portfolio. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.