Market Update [October 19] – Decline narrows thanks to bottom fishing demand
On Friday (October 19th), although having sharp drop opening, the bottom fishing demand quickly triggered, helping the VN-Index narrow the decline. The highlight of the market was the quarterly portfolio review of VFMVN30 ETF, although not significantly impacted on the index, but contributing to the improvement of market liquidity.
By the closing bell, the VN-Index fell 5.11 points (-0.53%) to close at 958.36. The HSX’s trading volume rose slightly to 150 million shares, worth over 4,000 billion. Foreign investors net sold approximately VND213 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows a green candlestick called “hammer” at support range of 940 – 960, and a common gap at 960 – 963 range, are quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will return to fill the common gap of 960 – 963 in the next session, the next resistance level is forecast at 973.8, or MA(100). In a negative scenario, the nearest support range of VN-Index is forecast at 940 – 960. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.
Please see the attached file for more details.