Market Update [January 07] – VN-Index rises nearly 9 points thanks to VNM, GAS and BID

07/01/2019 17:09

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Monday (January 07th), although the VN-Index opened on a positive note, and rose more than 16 points at its highs, however, the gains were narrowed in the afternoon session due to profit-taking pressure. In particular, VNM, VIC, MSN, PLX, SAB, GAS, BID, VCB, MBB, STB, MWG, PNJ and VHM were the large-cap gainers, offsetting the relative weakness in CTG, EIB, HPG, NVL and HDB.

By the closing bell, the VN-Index rose 8.74 points (+0,99%) to close at 889.64. Trading volume was nearly 130 million shares, worth VND2,600 billion. Breadth was widely positive, with gainers topping losers 195 to 95. Foreign investors net sold VND45 billion on the HSX.

In view of technical analysis, the VN-Index’s chart breaks out the resistance level of 886.6, or MA(5), which is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 900 – 920, 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 860 – 880, the next support range is expected at 820 – 840. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.