Market Update [December 18] – VN-Index narrows losses thanks to bargain hunters
On Tuesday (December 18th), although losing 17 points at its lows, however, the VN-Index minimized the losses thanks to the late bottom fishing demand in the afternoon session. In particular, VCB, GAS, BID, MBB, MWG and TCB were the large-cap gainers, offsetting the relative weakness in VIC, VNM, BVH, HPG, NVL and MSN.
By the closing bell, the VN-Index lost 6.40 points (-0.69%) to close at 927.25. Trading volume was over 175 million shares, worth VND4,400 billion. Breadth was widely negative, with losers topping gainers 86 to 203. Foreign investors net bought VND360 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows a green candlestick called ‘Hammer’ at the support range of 920 – 930, which is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 940 – 950, at which investors can sell a part of the existing short-term portfolio. In a negative scenario, the nearest support range of VN-Index is forecast at 920 – 930, the next support range is expected at 900 – 910. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.
Please see the attached file for more details.