Market Update [October 24] – VN-Index posts 5-day losing streak on weak bluechips

24/10/2018 17:17

Report: Market Update

On Wednesday (October 24th), the VN-Index closed at its lows, posting a 5-day losing streak as bluechips underperformed (BID, VHM, TCB, MSN, CTG, …). The highlight of the market was oil & gas stocks (GAS, PVD, PLX, …), fell sharply after negative news from oil prices.

By the closing bell, the VN-Index lost 16.95 points (-1.80%) to close at 922.73. The HSX’s trading volume fell to nearly 150 million shares, worth over 3,500 billion. Foreign investors net sold more than VND116 billion on the HSX, mainly in MSN.

In view of technical analysis, the VN-Index’s chart shows a long red candlestick with the closing price is the lowest price in the session, is quite negative. Therefore, we believe that, in a negative scenario, VN-Index will test the nearest support range of 900 – 920, the next support range is forecast at 880 – 900. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 940 – 960, 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.