Market Update [October 22] – VN-Index ends down 5 points on late sell-off

22/10/2018 17:13

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Monday (October 22nd), the market traded positive through the major part of the day but selling pressure built up towards the end, leading the VN-Index to close lower. In particular, the market-sensitive stock groups such as securities, bank, real estate, construction,.. all fell, hitting investor sentiment.

By the closing bell, the VN-Index lost 4.85 points (-0.51%) to close at 953,51. The HSX’s trading volume remained low at 150 million shares, worth over 3,600 billion. Foreign investors net sold VND87 billion on the HSX.

In view of technical analysis, although the “common gap” at 960 – 963 range is filled, however, the failing to test the resistance level of 962, or MA(5), and losing the support level of 960 of VN-Index, are quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 940 – 950. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 960 – 970, 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.