Market Update [January 08] – VN-Index reduces losses thanks to bargain hunters

08/01/2019 17:02

Report: Market Update

On Tuesday (January 08th), although losing 6 points at its lows, however, the VN-Index narrowed the losses thanks to the late bottom fishing demand. In particular, VNM, PLX, BID, BVH, CTG, MBB, STB, NVL and HPG were the large-cap losers, offsetting the small gains in MSN, GAS, BHN and VCB.

By the closing bell, the VN-Index lost 2.20 points (-0.25%) to close at 887.44 Trading volume was over 110 million shares, worth VND2,700 billion. Breadth was negative, with losers topping gainers 118 to 162. Foreign investors net sold VND128 billion on the HSX.

In view of technical analysis, the VN-Index’s chart retests successfully the broken resistance level of 885,6, 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.