Market Update [April 16] – VN-Index cuts losses thanks to bargain hunters

16/04/2019 17:09

Report: Market Update

On Tuesday (April 16th), although losing nearly 20 points at its lows of the day, however, the VN-Index narrowed the losses as bargain hunters moved in. In particular, VHM, VCB, GAS, TCB, VRE, CTG and MBB were the large-cap losers, offsetting the small gains in BID, SAB, VNM and HDB. By the closing bell, the VN-Index lost 5.73 points (-0.58%) to close at 977.17. Trading volume was over 150 million shares, worth VND3,300 billion. Breadth was negative, with losers topping gainers 190 to 108. Foreign investors net bought VND192 billion on the HSX, mainly in BID and HDB.

In view of technical analysis, the VN-Index’s daily chart shows a green candlestick called “Hammer” at the support range of 960 – 970, which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 980 – 990, 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 960 – 970, the next support range is expected at 940 – 950.

We recommend investors should not buy at high ask in this period, and consider taking profits partly in gaining sessions. 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.