Market Update [November 01] – VN-Index tanks nearly 7 points after opening higher

01/11/2018 17:22

Report: Market Update

On Thursday (November 01st), after opening higher, the selling pressure suddenly increased, causing VN-Index to lose green ink. In particular, VIC, VNM, VCB, GAS, TCB, CTG, HPG, PLX, VRE, VPB were the large-cap losers, dragging the index down. Conversely, VHM, BID, VJC, BVH, HDB, BHN were the large-cap gainers, helping trim the losses.

By the closing bell, the VN-Index lost 6.80 points (-0.74%) to close at 907.96. The HSX’s trading volume was over 180 million shares, worth over VND6,300 billion. Market breadth stayed negative as decliners outnumbered advancers on a ratio of 99-to-190 stocks. Foreign investors net bought more than VND2,120 billion on the HSX, mainly in MSN (VND2,275 billion).

In view of technical analysis, we believe that the sideways trend will continue in the coming sessions, especially when the VN-Index may return to test the strong support level of 900, created by MA (5). 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.