Market Update [April 10] – Seafood stocks outperform, VN-Index falls over 6 points

10/04/2019 17:40

Report: Market Update

On Wednesday (April 10th), although seafood stocks outperformed the market, however, the VN-Index still closed lower due to high selling pressure in bluechip stocks such as VIC, VHM, VCB, BID, PLX, MSN, TCB and CTG. By the closing bell, the VN-Index lost 6.57 points (-0.66%) to close at 981.91. Trading volume was nearly 160 million shares, worth VND3,500 billion. Breadth was negative, with losers topping gainers 183 to 113. Foreign investors net bought VND82 billion on the HSX, mainly in VNM, VHM and VRE.

In view of technical analysis, the VN-Index’s chart shows a red candlestick dwelled below the MA(5), MA(10), MA(14) and MA(20), which is a sign of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 970 – 980, the next support range is forecast at 950 – 960. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 990 – 1,000, at which investors can sell a part of the existing short-term portfolio.

We recommend investors avoid bottom fishing, while keeping a low stock proportion in order to minimize risks if the support level of 950 – 960 continues to be broken. 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.