Market Update [January 25] – VN-Index posts 3-day gain streak

25/01/2019 17:10

Report: Market Update

On Friday (January 25th), the VN-Index closed higher, logging a 3-day winning streak thanks to the rise of some blue chips such as VJC, VCB, BVH, VNM, PLX, MSN and VIC. Adversely, VHM, BID, CTG, GAS and HPG were the large-cap losers, weighing on the index.

By the closing bell, the VN-Index rose 0.09 points (+0.01%) to close at 908.88. Trading volume was nearly 120 million shares, worth VND2,700 billion. Breadth was negative, with losers topping gainers 134 to 155. Foreign investors net sold VND32 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called ‘Doji’ at the support level of 908.7, 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 910 – 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 890 – 900, the next support range is expected at 870 – 880. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.