Market Update [December 13] – VN-Index erases earlier gains to end lower

13/12/2018 17:08

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Thursday (December 13th), although rising 6 points at its highs, however, the VN-Index erased its earlier gains to close lower as bank stocks retreated. Conversely, VIC, VNM, HPG and STB were the large-cap gainers, helping trim the losses.

By the closing bell, the VN-Index lost 1.03 points (-0.11%) to close at 960.25. Trading volume was over 170 million shares, worth VND3,800 billion. Breadth was positive, with gainers topping losers 145 to 143. Foreign investors net sold VND41 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 level of 962, or MA(150), which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 950 – 960, the next support range is forecast at 930 – 940. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 970 – 980, 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.