Market Update [November 12] – VN-Index rises amid low liquidity

12/11/2018 17:39

Report: Market Update

On Monday (November 12th), although liquidity was low and breadth was widely negative, however, large caps helped keep the index from posting declines. In addition, energy sector took the blue ribbon today as it jumped in conjunction with oil prices.

By the closing bell, the VN-Index rose 3.83 points (+0.42%) to close at 918.12. Trading volume dropped sharply to 125 million shares, worth VND2,700 billion. Decliners outnumbered advancers on a ratio of 161-to-124 stocks. Foreign investors net sold more than VND218 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called “Hammer” at the support range of 900 – 910, is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 920 – 930, 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 900 – 910, the next support range is expected at 880 – 890. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.