Market Update [November 14] – Bank stocks fall amid bad debt worries

14/11/2018 17:22

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Wednesday (November 14th), the VN-Index erased all of its early gains to finish lower, dragged down by the bank stocks amid worries about bad debt. Conversely, VNM, VIC and SAB were the large-cap gainers, helping trim the losses.

By the closing bell, the VN-Index lost 4.45 points (-0.49%) to close at 900.93. Trading volume was over to 140 million shares, worth VND3,400 billion. Breadth was widely negative, with losers topping gainers 148 to 127. Foreign investors net sold more than VND10 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a red candlestick called “Inverted hammer”, and closes above 900, are quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 910 – 920, 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 890 – 900, the next support range is expected at 870 – 880. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.