Market Update [December 05] – Bank stocks help cut VN-Index’s losses
On Wednesday (December 5th), although losing 12 points at its lows, however, the VN-Index minimized the losses thanks to the rise of bank stocks. Adversely, VNM, VHM and SAB were the large-cap losers, dragging the index down.
By the closing bell, the VN-Index fell 1.70 points (-0.18%) to close at 957.14. Trading volume was over 210 million shares, worth VND4,800 billion. Breadth was positive, with gainers topping losers 144 to 142. Foreign investors net sold VND18 billion on the HSX.
In view of technical analysis, the VN-Index’s chart loses the strong support level of 958, or MA(100), which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 940 – 950, the next support range is forecast at 920 – 930. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 960 – 970, at which investors can sell a part of the existing short-term portfolio. Based on Kelly formula, the recommended proportion of the portfolio is 30% cash/ 70% stocks.
Please see the attached file for more details.