Market Update [October 31] – VN-Index rises more than 26 points at highs

31/10/2018 17:23

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Wednesday (October 31st), the VN-Index opened higher thanks to positive news from world market, snapping a 9-day losing streak. In particular, oil-gas stocks and bank stocks were the largest contributors to the index’s rally. In addition, the market-sensitive stock groups such as securities, textiles, real estate, construction, also had good performance.

By the closing bell, the VN-Index gained 26.07points (+2.93%) to close at 914.76. The HSX’s trading volume rose to nearly 220 million shares, worth approximately VND7,000 billion. Foreign investors net sold more than VND164 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called “Marubozu”, and breaks out MA(5), are quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 920 – 940, 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 880 – 900, the next support range is expected at 840 – 860. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.