Market Update [March 08] – VN-Index loses 990 after falling nearly 9 points

08/03/2019 17:24

Report: Market Update

On Friday (March 08th), the VN-Index traded on a negative note, and closed at its lows of the day due to negative impact from world markets. In particular, most of large caps fell, dragging the index down. Conversely, SAB, NVL and EIB were the large cap gainers, helping trim the losses. By the closing bell, the VN-Index shed 8.78 points (-0.88%) to close at 985.25. Trading volume was over 200 million shares, worth VND4,200 billion. Breadth was negative, with losers topping gainers 117 to 192. Foreign investors net bought VND13 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows the second red candlestick, and loses the support level of 992, 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 970 – 980, including MA(20). In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 990 – 1,000, including MA(5), at which investors can sell a part of the existing short-term portfolio.

We recommend investors should be cautious to observe the support range of 970 – 980. If breaking this support range, the VN-Index will enter a short-term downtrend. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.