Market Update [March 13] – VN-Index rises over 4 points thanks to VHM, VRE and SAB

13/03/2019 17:27

Report: Market Update

On Wednesday (March 13th), although rising over 8 points at its highs of the day, however, the VN-Index cut its gains due to profit-taking pressure. In particular, VHM, VCB, SAB, TCB, VRE, CTG, HPG and VPB were the large-cap gainers, offsetting the relative weakness in VIC, VNM, GAS, VJC and NVL. By the closing bell, the VN-Index added 4.09 points (+0.41%) to close at 1.005,41. Trading volume was nearly 230 million shares, worth VND5,100 billion. Breadth was positive, with gainers topping losers 169 to 127. Foreign investors net bought VND128 billion on the HSX, mainly in E1VFVN30.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called ‘shooting star’ at the resistance range of 1,000 – 1,010, which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 990 – 1,000, including MA(5) and 38.2% fibonacci retracement level, the next support range is forecast at 970 – 980. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 1,010 – 1,020, 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 30% cash/ 70% stocks. Tail risks include black swan events.

Please see the attached file for more details.