Market Update [June 06] – VN-Index reduces losses thanks to bargain hunters
On Thursday (June 06th), although losing over 12 points at its lows of the day, however, the VN-Index minimized the losses thanks to the late bottom fishing demand in the afternoon session. In particular, GAS, VCB, VNM, VHM and HPG were the large-cap losers, offsetting the small gains in VIC, VNM, BVH, HPG, NVL and MSN. By the closing bell, the VN-Index lost 3.20 points (-0.34%) to close at 948.21. Trading volume was over 125 million shares, worth VND3,100 billion. Breadth was negative, with losers topping gainers 162 to 111. Foreign investors net sold VND52 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 “Pin bar”, dwelling above the MA150, which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 950 – 960, 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 930 – 940, the next support range is expected at 910 – 920.
We recommend investors consider reducing stock proportion in technical recovery sessions, especially when the current cash flow is very weak, and the risk of decline still exists. Based on Kelly formula, the recommended proportion of the portfolio is 90% cash/ 10% stocks.
Please see the attached file for more details.