Market Update [November 02] – VN-Index rises nearly 17 points as trade war fears ease

02/11/2018 17:24

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Friday (November 2nd), the VN-Index opened higher thanks to the easing global trade war concerns. In particular, most of large caps rallied, contributing significantly to the rally of VN-Index. In addition, the market-sensitive stock groups such as banks, securities, oil-gas, textiles and real estate, also had good performance, creating positive sentiment to the market.

By the closing bell, the VN-Index gained 16,90 points (+1.86%) to close at 924.86. The HSX’s trading volume was over 220 million shares, worth nearly VND4,400 billion. Market breadth was positive as advancers outnumbered decliners on a ratio of 201-to-89 stocks. Foreign investors net sold more than VND242 billion on the HSX.

In view of technical analysis, the Vn-Index shows a long green candlestick with improved liquidity, is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 930 – 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 910 – 920, the next support range is expected at 890 – 900. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.