Market Update [February 01] – VN-Index closes lower due to ETF rebalancing activity
On Friday (February 01st), after a negative opening, the VN-Index failed to recover lately due to the negative impact of ETF rebalancing activity in ATC phase. In particular, VIC, VCB, PLX, HPG, VRE, VPB and FPT were the large-cap losers, offsetting the small gains in TCB, MSN, CTG, VJC, BVH, EIB and BHN.
By the closing bell, the VN-Index lost 1.98 points (-0.22%) to close at 908.67. Trading volume was over 140 million shares, worth VND3,900 billion. Breadth was positive, with gainers topping losers 182 to 92. Foreign investors net bought VND163 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows a red candlestick dwelled below the MA(5), which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support level of 905.3, or MA(20), 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 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.