Market Update [November 06] – Bank stocks fall, drag VN-Index down
On Tuesday (November 6th), although opening higher, however, high selling pressure after 2 p.m dragged the VN-Index down to its lows. In particular, bank stocks had the most negative impact on the index. In addition, large caps underperformed, making the decline worse.
By the closing bell, the VN-Index fell 3.48 points (-0.38%) to close at 922.05. The HSX’s trading volume was nearly 140 million shares, worth over VND3,100 billion. Market breadth was positive as advancers outnumbered decliners on a ratio of 142-to-139 stocks. Foreign investors net bought more than VND11 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows a red candlestick called “Black marubozu”, is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 910 – 920, the next support range is forecast at 890 – 900. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 930 – 940, at which investors can sell a part of the existing short-term portfolio.. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.
Please see the attached file for more details.