Market Update [April 04] – VN-Index ekes out small gain amid lack of leads

04/04/2019 17:42

Report: Market Update

On Thursday (April 04th), the VN-Index fluctuated in a narrow range as large caps traded mixed throughout the bourse amid a lack of fresh leads. Particularly, VIC, VCB, SAB, CTG, BVH, HPG and HDB were the large-cap gainers, offsetting the relative weakness in VNM, GAS, BID, VJC, MWG and POW. By the closing bell, the VN-Index added 2.45 points (+0.25%) to close at 986.91. Trading volume was over 160 million shares, worth VND3,300 billion. Breadth was positive, with gainers topping losers 178 to 113. Foreign investors net sold over VND29 billion on the HSX, mainly in HPG.

In view of technical analysis, the VN-Index’s chart shows a red candlestick called “Doji”, dwelling above the MA(5), while the RSI continues to move up to 60, which are the signs 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 cautious, and wait for more information from the US-China trade war. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks. Tail risks include black swan events.

Please see the attached file for more details.