Market Update [November 29] – VN-Index tanks over 3 points after opening higher

29/11/2018 17:36

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Thursday (November 29th), after opening higher, the VN-Index lost green ink, and closed at its lows of the day as some of blue chips retreated. In particular, VNM, GAS, BID, HPG, PLX and BVH were the large-cap losers, dragging the index down. Conversely, VHM, VJC, VRE and CTG were the large-cap gainers, helping trim the losses.

By the closing bell, the VN-Index lost 3.41 points (-0.37%) to close at 926.79. Trading volume was over 130 million shares, worth VND3,000 billion. Breadth was widely negative, with losers topping gainers 165 to 122. Foreign investors net bought VND96 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a long red candlestick, and loses the support level of 930, which are quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support level of 924, or MA(5), the next support range is forecast at 910 – 920. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 930 – 940, at which investors can sell a part of the existing short-term portfolio. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.