Market Update [May 30] – VN-Index loses 970 after falling over 2 points

30/05/2019 17:18

Report: Market Update

On Thursday (May 30th), although rising over 3 points at one point, however, the VN-Index lost the ground and 970 due to high selling pressure in ATC session. In particular, VHM, VNM, PLX, MSN and HPG were the large-cap losers, offsetting the small gains in SAB, VCB, TCB, VRE and NVL. By the closing bell, the VN-Index lost 2.20 points (-0.23%) to close at 969.34. Trading volume was nearly 160 million shares, worth VND4,100 billion. Breadth was negative, with losers topping gainers 160 to 128. Foreign investors net sold VND676 billion on the HSX, mainly in VJC.

In view of technical analysis, the VN-Index’s daily chart loses the support level of 970, which is a sign of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 950 – 960, the next support range is forecast at 930 – 940. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 970 – 980, at which investors can sell a part of the existing short-term portfolio.

We recommend investors avoid bottom fishing, while keeping a low stock proportion in order to minimize risks if the support level of 950 – 960 continues to be broken. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.

Please see the attached file for more details.