Market Update [April 05] – VN-Index rises over 2 points thanks to GAS, VHM and VCB

05/04/2019 17:10

Report: Market Update

On Friday (April 05th), yesterday’s scenario repeated when the VN-Index fluctuated in a narrow range, and closed slightly higher. In particular, GAS, VHM, VCB, VRE and PLX were the large-cap gainers, offsetting the relative weakness in VNM, SAB, BID, MBB and CTG. By the closing bell, the VN-Index rose 2.35 points (+0.24%) to close at 989.26. Trading volume was nearly 190 million shares, worth VND3,900 billion. Breadth was positive, with gainers topping losers 159 to 128. Foreign investors net sold VND52 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a short green candlestick dwelled 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 in this period, and wait for more information from micro, macro and world events such as Q1 2019 earnings results, oil prices, Brexit, US-China trade negotiations,… 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.