Market Update [March 15] – VN-Index remains above 1,000 thanks to BID, PLX and HDB
On Friday (March 15th), although losing 7 points at its lows of the day, however, the VN-Index cut the losses, and closed above 1,000 thanks to the rise of some large caps such as BID, PLX and HDB. Adversely, VHM, VCB, GAS, MSN, VRE, HPG and POW were the large-cap losers, weighing on the index. By the closing bell, the VN-Index lost 4.32 points (-0.43%) to close at 1.004,12. Trading volume was over 250 million shares, worth VND6,500 billion. Breadth was negative, with losers topping gainers 178 to 131. Foreign investors net sold VND172 billion on the HSX, mainly in HPG.
In view of technical analysis, the VN-Index’s chart shows a red candlestick called ‘Hanging man’ 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, 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.