Market Update [November 23] – VN-Index loses over 6 points on late sell-off
On Friday (November 23rd), the VN-Index traded on a cautious note, and closed at its lows of the day. In particular, most of large caps fell, dragging the index down. Conversely, VIC, BVH, PLX, NVL and EIB were the large-cap gainers, helping trim the losses.
By the closing bell, the VN-Index dropped 6.45 points (-0.70%) to close at 917.97. Trading volume was nearly 140 million shares, worth VND3,100 billion. Breadth was negative, with losers topping gainers 185 to 114. Foreign investors net bought nearly VND115 billion on the HSX.
In view of technical analysis, the VN-Index’s chart loses the support level of 920, or MA(5), is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support level of 913, or MA(20), the next support range is forecast at 900 – 910. 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 70% cash/ 30% stocks.
Please see the attached file for more details.