Market Update [May 13] – VN-Index rises nearly 6 points thanks to VNM, VHM and BID
On Monday (May 13th), the VN-Index traded on a positive note, and closed at its highs of the day, highlighting the good performance of bluechip stocks. In particular, VNM, VHM, BID, VRE, BVH, POW and HVN were the large-cap gainers, offsetting the relative weakness in GAS, HPG, MSN, PLX, NVL and EIB. By the closing bell, the VN-Index added 5.99 points (+0.63%) to close at 958.54. Trading volume was over 230 million shares, worth VND4,500 billion. Breadth was positive, with gainers topping losers 163 to 127. Foreign investors net sold VND113 billion on the HSX, mainly in VHM and HPG.
In view of technical analysis, the VN-Index’s daily chart shows a long green candlestick dwelled above the long-term moving averages such as the MA100, MA150 and MA200, 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 960 – 970, including the short-term moving averages such as the MA10, MA14 and MA20, 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 940 – 950, the next support range is expected at 920 – 930.
We recommend investors to observe carefully the resistance range of 960 – 970, if this range is broken, the VN-Index may return to the short-term uptrend. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.
Please see the attached file for more details.