Market Update [December 14] – Asian markets hit hard VN-Index
On Friday (December 14th), the VN-Index traded on a negative note following a drop in Asian markets. In particular, bank stocks dropped sharply, weighing on the index. In addition, large caps underperformed the market, making the decline worse.
By the closing bell, the VN-Index lost 8.21 points (-0.85%) to close at 952.04. Trading volume was over 200 million shares, worth VND4,700 billion. Breadth was negative, with losers topping gainers 105 to 192. Foreign investors net sold VND0.1 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows the second red candlestick, and loses the support level of 960, which are 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 50% cash/ 50% stocks.
Please see the attached file for more details.