Market Update [March 29] – VN-Index closes lower on late sell-off

29/03/2019 16:33

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Friday (March 29th), although opening higher, however, the VN-Index lost the ground to close at its lows of the day due to high selling pressure in large caps. In particular, VHM, VNM, GAS, MSN, CTG, HPG, BVH, VJC, NVL and VPB were the large-cap losers, offsetting the small gains in VCB, BID, TCB, VRE and EIB. By the closing bell, the VN-Index lost 2.22 points (-0.23%) to close at 980.76. Trading volume was over 170 million shares, worth VND3,900 billion. Breadth was positive, with gainers topping losers 153 to 144. Foreign investors net bought VND137 billion on the HSX, mainly in E1VFVN30 and KBC.

In view of technical analysis, the VN-Index’s chart shows a red candlestick called “Shooting star”, which is a sign of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 970 – 980, including MA(5), the next support range is forecast at 950 – 960. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 990 – 1,000, at which investors can sell a part of the existing short-term portfolio.

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.