Market Update [April 19] – VN-Index rises nearly 4 points thanks to SAB, VIC and MSN
On Friday (April 19th), although rising over 9 points at one point, however, the VN-Index cut its gains due to profit-taking pressure. In particular, SAB, VIC, MSN, GAS, NVL, HPG and VCB were the large-cap gainers, offsetting the relative weakness in VNM, CTG, TCB and POW. By the closing bell, the VN-Index rose 3.91 points (+0.41%) to close at 966.21. Trading volume was nearly 110 million shares, worth VND2,100 billion. Breadth was positive, with gainers topping losers 185 to 120. Foreign investors net sold VND27 billion on the HSX, mainly in POW.
In view of technical analysis, the VN-Index’s daily chart shows a short red candlestick called “Inverted Hammer” at the neckline of head-and-shoulders pattern, while the RSI rises above 40, which are the signs of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 970 – 980, 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 950 – 960, the next support range is expected at 930 – 940.
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 90% cash/ 10% stocks. Tail risks include black swan events.
Please see the attached file for more details.