Market Update [March 04] – VN-Index tops 990 after soaring over 14 points

04/03/2019 17:08

Report: Market Update

On Monday (March 04th), 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, securities, oil&gas, real estate, steel, seafood and textile, also had good performance, creating positive sentiment to the market.

By the closing bell, the VN-Index soared 14.36 points (+1.47%) to close at 993.99. Trading volume was over 230 million shares, worth VND5,000 billion. Breadth was positive, with gainers topping losers 230 to 94. Foreign investors net sold VND138 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a long green candlestick, and breaks out the resistance level of 983, or MA(5), which is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance level of 995, or 38.2% fibonacci retracement level, the next resistance range will be forecast at 1.000 – 1.010. In a negative scenario, the nearest support range of VN-Index is forecast at 980 – 990, the next support range is expected at 960 – 970. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.