Market Update [January 30] – VN-Index snaps 5-day gain streak on late sell-off

30/01/2019 17:00

Report: Market Update

On Wednesday (January 30th), the VN-Index closed lower, snapping a 5-day winning streak on late sell-off. In particular, VNM, MSN, CTG, HPG, MWG and ROS were the large-cap losers, offsetting the small gains in VHM, TCB, BVH, VJC, MBB and FPT.

By the closing bell, the VN-Index inched down 0.09 points (-0.01%) to close at 915.84. Trading volume was nearly 140 million shares, worth VND3,400 billion. Breadth was negative, with losers topping gainers 140 to 141. Foreign investors net bought VND80 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick dwelled above the MA(5), which is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 920 – 930, 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 900 – 910, the next support range is expected at 880 – 890. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.