Market Update [March 19] – VN-Index loses 1,010 after falling over 5 points

19/03/2019 16:53

Report: Market Update

On Tuesday (March 19th), the VN-Index traded on a negative note, and closed at its lows of the day, highlighting the poor performance of bluechip stocks. In particular, VIC, VHM, VCB, VNM, GAS, BID, TCB, VRE, CTG, PLX, VPB, NVL and POW were the large-cap losers, offsetting the small gains in SAB, MSN, HPG, BVH, HDB, EIB and BHN. By the closing bell, the VN-Index lost 5.27 points (-0.52%) to close at 1,006.59. Trading volume was nearly 240 million shares, worth VND5,800 billion. Breadth was negative, with losers topping gainers 130 to 182. Foreign investors net bought VND190 billion on the HSX, mainly in CTG.

In view of technical analysis, the VN-Index’s chart shows a pattern called ‘Bearish Engulfing Pattern’, which is a sign of negativity. 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 be cautious to observe the support range of 990 – 1,000. 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.