Market Update [January 31] – VHM, CTG and HPG drag VN-Index down

31/01/2019 17:14

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Thursday (January 31st), although opening higher, however, the VN-Index lost the ground to close at its lows of the day due to high selling pressure in large caps. In particular, VNM, VHM, GAS, BID, TCB, MSN, CTG, BVH and HPG were the large-cap losers, offsetting the small gains in VCB, PLX, VJC, VPB, HDB and STB.

By the closing bell, the VN-Index lost 5.19 points (-0.57%) to close at 910.65. Trading volume was nearly 140 million shares, worth VND3,200 billion. Breadth was positive, with gainers topping losers 146 to 126. Foreign investors net sold VND119 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 912.9, or MA(5), which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 900 – 910, the next support range is forecast at 880 – 890. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 920 – 930, 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.