Market Update [November 05] – VN-Index rises on late recovery

05/11/2018 17:12

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Monday (November 5th), after losing more than 9 points at its lows, the VN-Index closed higher thanks to the late bottom fishing demand. In particular, bank stocks were the largest contributors to the index’s rally. In addition, some of large caps outperformed, helping to support the market.

By the closing bell, the VN-Index rose 0.67 points (+0.07%) to close at 925.53. The HSX’s trading volume was over 136 million shares, worth nearly VND3,200 billion. Market breadth was negative as decliners outnumbered advancers on a ratio of 137-to-129 stocks. Foreign investors net bought more than VND68 billion on the HSX.

In view of technical analysis, the Vn-Index shows a green candlestick called “Hammer”, 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.