Market Update [October 25] – VN-Index falls for 6 straight session

25/10/2018 17:10

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Thursday (October 25th), the VN-Index opened lower after negative news from U.S. stocks, posting a 6-day losing streak. However, the late bottom fishing demand rose sharply, helping trim the early losses. In particular, MSN, PLX and NVL were the 3 large-cap gainers, rising 3.33%, 2.69% and 2.20% respectively.

By the closing bell, the VN-Index fell 12.56 points (-1.36%) to close at 910.17. The HSX’s trading volume rose to nearly 180 million shares, worth over 4,300 billion. Foreign investors net sold more than VND139 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called “hammer” at support range of 880 – 900, and a common gap at 912 – 922 range, are quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will return to fill the common gap of 912 – 922 in the next session, the next resistance range is forecast at 920 – 940. In a negative scenario, the nearest support range of VN-Index is forecast at 880 – 900, the next support range is expected at 840 – 860. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.