Market Update [January 17] – VN-Index ends down nearly 7 points on late sell-off

17/01/2019 17:06

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Thursday (January 17th), after fluctuating in narrow margin, the VN-Index hit its lows of the day due to high selling pressure in ATC phase. In particular, most of large caps fell, dragging the index down. Conversely, TCB, BVH, MBB and EIB were the large cap gainers, helping trim the losses.

By the closing bell, the VN-Index lost 6.81 points (-0.75%) to close at 901.89. Trading volume was over 130 million shares, worth VND2,500 billion. Breadth was negative, with losers topping gainers 100 to 174. Foreign investors net bought VND26 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a long red candlestick, and breaks down the support level of 905, or MA(5), which is quite negative. Therefore, we believe that, in a negative scenario, VN-Index will test the nearest support range of 890 – 900, the next support range is forecast at 870 – 880. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 910 – 920, 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.