Market Update [November 07] – VN-Index stages late recovery to finish higher

07/11/2018 17:34

Report: Market Update

On Wednesday (November 7th), the VN-Index opened on a cautious note, losing nearly 7 points at its lows. However, the index rebounded in the last trading minutes to end higher thanks to the recovery of some large caps. Particularly, VNM, VHM, and BID were the largest contributors, rising 1.5%, 1.0% and 1.4% respectively.

By the closing bell, the VN-Index rose 0.11 points (+0.01%) to close at 922.16. The HSX’s trading volume was more than 140 million shares, worth nearly VND3,200 billion. Market breadth was widely negative as decliners outnumbered advancers on a ratio of 165-to-111 stocks. Foreign investors net bought nearly VND90 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called “Doji”, 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.