Market Update [April 11] – VN-Index rises over 4 points thanks to VIC, VHM and MSN

11/04/2019 16:19

Report: Market Update

On Thursday (April 11th), the VN-Index fluctuated in a narrow margin, and closed higher thanks to the rise of some large caps such as VIC, VHM and MSN. Adversely, VCB, GAS, VRE, BVH and VPB were the large-cap losers, weighing on the index. By the closing bell, the VN-Index rose 4.04 points (+0.41%) to close at 985.95. Trading volume was nearly 130 million shares, worth VND2,600 billion. Breadth was positive, with gainers topping losers 162 to 136. Foreign investors net sold VND62 billion on the HSX, mainly in CTD, VJC and AAA.

In view of technical analysis, the VN-Index’s chart shows a small green candlestick dwelled below the MA(5), MA(10) 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.