Market Update [February 11] – VN-Index soars over 17 points at highs
On Monday (February 11th), the VN-Index traded on a positive note, and closed at its highs of the day. Particularly, most of large caps rallied, contributing significantly to the rally of index. In addition, the market-sensitive stock groups such as banks, securities, oil&gas, real estate, textile and seafood, also had good performance, creating positive sentiment to the market.
By the closing bell, the VN-Index gained 17.43 points (+1.92%) to close at 926.10. Trading volume was nearly 125 million shares, worth VND2,900 billion. Breadth was positive, with gainers topping losers 214 to 92. Foreign investors net bought VND11 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows a long green candlestick, and breaks out the resistance level of 917.9, or MA(50), which is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 930 – 940, 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 910 – 920, the next support range is expected at 890 – 900. Based on Kelly formula, the recommended proportion of the portfolio is 30% cash/ 70% stocks.
Please see the attached file for more details.