Market Update [March 18] – VN-Index tops 1,010 after rising nearly 8 points

18/03/2019 17:16

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Monday (March 18th), the VN-Index traded on a positive note, and closed at its highs of the day. Particularly, most of large caps rallied, contributing significantly to the rally of index. In addition, the market-sensitive stock groups such as banks and oil&gas, also had good performance, creating positive sentiment to the market. By the closing bell, the VN-Index added 7.74 points (+0.77%) to close at 1,011.86. Trading volume was over 230 million shares, worth VND5,400 billion. Breadth was positive, with gainers topping losers 175 to 133. Foreign investors net sold VND80 billion on the HSX, mainly in POW.

In view of technical analysis, the VN-Index’s chart shows a long green candlestick dwelled above the MA(5), which is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 1,020 – 1,030, at which investors can sell a part of the existing short-term portfolio. In a negative scenario, the nearest support range of VN-Index is forecast at 1,000 – 1,010, the next support range is expected at 980 – 990.

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.