Market Update [May 24] – VN-Index loses 980 after falling nearly 13 points

24/05/2019 16:48

Report: Market Update

On Friday (May 24th), the VN-Index traded on a negative note, and closed at its lows of the day due to net selling activities from foreign investors. In particular, most of large caps fell, dragging the index down. By the closing bell, the VN-Index dropped 12.68 points (-1.29%) to close at 970.03. Trading volume was nearly 160 million shares, worth VND4,000 billion. Breadth was negative, with losers topping gainers 183 to 112. Foreign investors net sold VND285 billion on the HSX, mainly in VNM and HPG.

In view of technical analysis, the VN-Index’s daily chart shows a red candlestick called “Inverted hammer” at the support level of 970, or MA20, 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, 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 970 – 980, the next support range is expected at 950 – 960.

We recommend investors should not buy at high ask in this period, and consider reducing stock proportion in technical recovery sessions. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.