Market Update [November 27] – VN-Index retreats from highs as bank stocks fall

27/11/2018 17:59

Report: Market Update

On Tuesday (November 27th), the VN-Index pared its earlier gains as bank stocks retreated. Conversely, VIC, VNM, VHM and SAB were the large-cap gainers, helping keep the index from posting decline.

By the closing bell, the VN-Index rose 2.09 points (+0.23%) to close at 923.12. Trading volume was over 150 million shares, worth VND3,700 billion. Breadth was widely negative, with losers topping gainers 167 to 126. Foreign investors net bought VND88.4 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a red candlestick called “shooting star” at the strong resistance range of 920 – 930, is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support level of 916, 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.