Market Update [November 09] – VN-Index loses nearly 12 points

09/11/2018 17:47

Report: Market Update

On Friday (November 9th), the VN-Index traded on a negative note, and closed at its lows. In particular, the large caps underperformed, putting pressure on the index. In addition, oil & gas stocks declined sharply due to negative impact from oil prices. Conversely, VHM, BVH were the large-cap gainers, helping trim the losses.

By the closing bell, the VN-Index lost 11.99 points (-1.29%) to close at 914.29. Trading volume was nearly 150 million shares, worth VND3,200 billion. Market breadth was widely negative as decliners outnumbered advancers on a ratio of 91-to-190 stocks. Foreign investors net bought more than VND161 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows the second red candlestick with the closing price is the lowest price of the day, is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 900 – 910, the next support range is forecast at 880 – 890. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 920 – 930, at which investors can sell a part of the existing short-term portfolio.. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.