Market Update [May 02] – VN-Index inches down as BVH hits floor

02/05/2019 17:19

Report: Market Update

On Thursday (May 02nd), although losing over 4 points at its lows of the day, however, the VN-Index minimized the losses thanks to the late bottom fishing demand after 2 p.m. In particular, VCB, BVH, VHM, BID, TCB and CTG were the large-cap losers, offsetting the small gains in GAS, SAB, MSN, VRE, HPG and VJC. By the closing bell, the VN-Index inched down 1.14 points (-0.12%) to close at 978.50. Trading volume was over 150 million shares, worth VND3,400 billion. Breadth was negative, with losers topping gainers 182 to 106. Foreign investors net bought VND45 billion on the HSX, mainly in VRE.

In view of technical analysis, the VN-Index’s daily chart shows a red candlestick called “Doji”, dwelling above the MA(5, 10 and 14), 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, including the MA(20, 50) and the upper trend line of the descending triangle pattern, 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 to observe carefully the resistance range of 980 – 990, if this range is broken, the VN-Index may return to the short-term uptrend. However, if not, the possibility that VN-Index will lose the support range of 960 – 970 may be taken into account. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.