Market Update [April 08] – VN-Index rises over 8 points thanks to VHM, VCB and GAS
On Monday (April 08th), the VN-Index traded on a positive note, and closed at its highs of the day, highlighting the good performance of bluechip stocks such as VHM, VCB, GAS, VNM, BID, VIC, CTG and PLX. Adversely, VJC, VPB, HDB, TCB, HPG and MWG were the large-cap losers, weighing on the index. By the closing bell, the VN-Index added 8.30 points (+0.84%) to close at 997.56. Trading volume was over 160 million shares, worth VND3,400 billion. Breadth was positive, with gainers topping losers 148 to 128. Foreign investors net bought VND144 billion on the HSX, mainly in MSN and VCB.
In view of technical analysis, the VN-Index’s chart shows a long green candlestick, and breaks out the resistance level of 991, or MA(20), which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 1,000 – 1,010, 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 980 – 990, the next support range is expected at 960 – 970.
We recommend investors should not buy at high ask in this period, and consider taking profits partly in strong gain sessions. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks. Tail risks include black swan events.
Please see the attached file for more details.