Market Update [October 16] – VN-Index rallies thanks to “Vingroup stocks”

16/10/2018 17:29

Report: Market Update

On Tuesday (October 16th), the market traded on a positive note, in contrast to the previous session. The highlight of the market was the “Vingroup stocks” including Vingroup (VIC) and its sub-units (VHM and VRE), rose sharply, contributing significantly to the rally of VN-Index.

By the closing bell, the VN-Index advanced 11.73 points (+1.23%), to close at 963.37. The HSX’s trading volume remained low at nearly 150 million shares, worth over 3,800 billion. Foreign investors net bought approximately VND1 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows the second “Piercing Pattern”, is quite positive. Therefore, we believe that, if the VN-Index breaks out the resistance level of 973.5, or MA(100), the next resistance range will be forecast at 980 – 1,000, at which investors can sell a part of the existing short-term portfolio. In a negative scenario, the nearest support range of VN-Index is forecast at 940 – 960, the next support range is expected at 900 – 920 points. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.