Market Update [February 26] – VN-Index ends 6-day win streak due to high profit-taking pressure

26/02/2019 16:51

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Tuesday (February 26th), high profit-taking pressure led the VN-Index to fall over 7 points, snapping its 6-day winning streak. In particular, VNM, VIC, VCB, GAS, BID, MSN, TCB, PLX and MBB were the large-cap losers, offsetting the small gains in CTG, VRE and ROS.

By the closing bell, the VN-Index lost 7.37 points (-0.74%) to close at 987.06. Trading volume was over 251 million shares, worth VND5,200 billion. Breadth was negative, with losers topping gainers 133 to 169. Foreign investors net bought VND154 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows the second red candlestick, which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 970 – 980, the next support range is forecast at 950 – 960. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 990 – 1,000, 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.