Market Update [May 14] – VN-Index tops 960 after rising nearly 7 points

14/05/2019 17:26

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Tuesday (May 14th), although opening lower, however, the VN-Index regained the ground, and closed at its highs of the day as blue chips rallied. Particularly, GAS, SAB, VNM, VCB, VIC, PLX and POW were the large-cap gainers, offsetting the relative weakness in BID, TCB, MSN, HDB, STB and EIB. By the closing bell, the VN-Index added 6.80 points (+0.71%) to close at 965.34. Trading volume was nearly 160 million shares, worth VND3,500 billion. Breadth was positive, with gainers topping losers 146 to 144. Foreign investors net sold VND213 billion on the HSX, mainly in VHM.

In view of technical analysis, the VN-Index’s daily chart shows a long green candlestick, and breaks out the psychological resistance level of 960, while the RSI moves up to 50 – 60 range, which are the signs of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance level of 968, or MA20, the next resistance range will be forecast at 970 – 980. 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 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.