Market Update [March 07] – VN-Index closes lower on high profit-taking in ATC session
On Thursday (March 07th), although rising 10 points at its highs, however, the VN-Index lost the ground due to high profit-taking pressure in ATC session. In particular, VNM, GAS, SAB, PLX, HPG, BVH and EIB were the large-cap losers, offsetting the small gains in VIC, VHM, VCB, BID, VRE, CTG and NVL. By the closing bell, the VN-Index inched down 0.46 points (-0.05%) to close at 994.03. Trading volume was over 210 million shares, worth VND4,700 billion. Breadth was negative, with losers topping gainers 149 to 162. Foreign investors net bought VND31 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows a red candlestick called ‘shooting star’ at the resistance level of 995, or 38.2% fibonacci retracement level, which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 980 – 990, the next support range is forecast at 960 – 970. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 1,000 – 1,010, at which investors can sell a part of the existing short-term portfolio.
We recommend investors should not buy at high ask in this period, and consider taking profits partly in strong gain sessions. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.
Please see the attached file for more details.