Market Update [March 05] – VN-Index closes lower on late sell-off

05/03/2019 16:44

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Tuesday (March 05th), although the VN-Index at one point tops 1,000, however, the index erased its earlier gains to close lower on late sell-off. In particular, VHM, VNM, TCB, PLX, HPG, NVL, MWG and EIB were the large-cap losers, offsetting the small gains in VCB, GAS, SAB, BID, BVH and POW.

By the closing bell, the VN-Index lost 1.54 points (-0.15%) to close at 992.45. Trading volume was nearly 300 million shares, worth VND6,000 billion. Breadth was positive, with gainers topping losers 159 to 148. Foreign investors net bought VND93 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a green candlestick called ‘shooting star’ at the resistance level of 995, or 38.2% fibonacci retracement level, which is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 980 – 990, the next support range is forecast at 960 – 970. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 1,000 – 1,010, at which investors can sell a part of the existing short-term portfolio. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.