Market Update [October 18] – Poor breadth, VN-Index loses over 8 points
On Thursday (October 18th), the market opened lower due to the negative impact from world markets. In particular, oil & gas stocks dropped sharply after the falling of oil prices. Conversely, VIC, BVH and ROS are 3 large caps, rallied, easing the decline of the index.
By the closing bell, the VN-Index fell 8.13 points (-0.84%) to close at 963.47. The HSX’s trading volume remained low at 145 million shares, worth over 3,200 billion. Foreign investors net bought VND91 billion on the HSX.
In view of technical analysis, we believe that, in a negative scenario, the nearest support range of VN-Index is forecast at 940 – 960. In a positive scenario, if the VN-Index breaks out the resistance level of 973.7, the next resistance range will be forecast at 980 – 1,000, 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.