Market Update [March 28] – VN-Index rises over 7 points thanks to VIC, VHM and VCB
On Thursday (March 28th), the VN-Index traded on a positive note, and closed at its highs of the day, highlighting the good performance of bluechip stocks such as VIC, VHM, VCB, GAS and BID. Adversely, VNM, SAB, TCB, VRE, VJC, NVL, VPB, POW, STB and EIB were the large-cap losers, weighing on the index. By the closing bell, the VN-Index added 7.07 points (+0.72%) to close at 982.98. Trading volume was nearly 220 million shares, worth VND4,100 billion. Breadth was positive, with gainers topping losers 157 to 148. Foreign investors net bought VND155 billion on the HSX, mainly in E1VFVN30.
In view of technical analysis, the VN-Index’s chart shows a long green candlestick, and breaks out the resistance level of 977, or MA(5), which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 990 – 1,000, 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 970 – 980, the next support range is expected at 950 – 960.
We recommend investors to be careful with fake technical signals. The short-term trend of VN-Index is still a downward trend, and can only be reversed when the index surpasses the resistance range of 990 –1,000. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.
Please see the attached file for more details.