Market Update [October 30] – VN-Index falls for 9 straight session on weak bluechips

30/10/2018 17:05

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Tuesday (October 30th), the VN-Index posted a 9-day losing streak as bluechips underperformed. In particular, VIC, VNM, BID, VRE, BVH and NVL were the most negative impact on the index, losing 5 points of it. Conversly, VCB, GAS, MSN, TCB, VJC and MWG were the large-cap gainers, but not enough to keep the index rally. The highlights of the market were bank stocks and oil & gas stocks, having many gainers.

By the closing bell, the VN-Index fell 0.13 points (-0.01%) to close at 888.69. The HSX’s trading volume reduced to over 130 million shares, worth nearly 3,000 billion. Foreign investors net sold VND95 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called “Inverted hammer”, is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 900 – 920, at which investors can sell a part of the existing short-term portfolio. In a negative scenario, the nearest support range of VN-Index is forecast at 860 – 880, the next support range is expected at 820 – 840. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.