Market Update [May 17] – VN-Index posts 6-day gain streak

17/05/2019 16:21

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Friday (May 17th), the VN-Index fluctuated in a narrow margin, and closed higher, posting a 6-day winning streak thanks to the rise of some large caps such as SAB, GAS, POW, PLX and CTG. Adversely, VHM, VNM, BID, VRE, MSN and TCB were the large-cap losers, weighing on the index. By the closing bell, the VN-Index edged up 0.79 points (+0.08%) to close at 976.48. Trading volume was over 135 million shares, worth VND3,200 billion. Breadth was negative, with losers topping gainers 167 to 125. Foreign investors net bought VND10 billion on the HSX, mainly in VRE.

In view of technical analysis, the VN-Index’s daily chart shows a short red candlestick called “Spinning top” at the upper trend line of the descending triangle pattern, which is a sign of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 960 – 970, the next support range is forecast at 940 – 950. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 980 – 990, at which investors can sell a part of the existing short-term portfolio.

We recommend investors to observe carefully the support range of 960 – 970, if this range is broken, the VN-Index may return to the short-term downtrend. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.