Market Update [January 14] – VN-Index remains above 900 thanks to bargain hunters

14/01/2019 16:55

Report: Market Update

On Monday (January 14th), although losing 5 points at its lows, however, the VN-Index narrowed the losses, and closed above 900 as bargain hunters moved in. In particular, GAS, TCB, PLX, BVH, NVL and MBB were the large-cap losers, offsetting the small gains in VNM, VHM, VCB and VRE.

By the closing bell, the VN-Index lost 0,91 points (-0.10%) to close at 901,80. Trading volume was over 140 million shares, worth VND2,800 billion. Breadth was negative, with losers topping gainers 124 to 159. Foreign investors net bought VND39 billion on the HSX.

In view of technical analysis, the VN-Index’s chart retests successfully the support level of 897, or MA(5), which is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance level of 904, or MA(20), the next resistance range will be forecast at 910 – 920. In a negative scenario, the nearest support range of VN-Index is forecast at 890 – 900, the next support range is expected at 870 – 880. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.