Market Update [June 07] – VN-Index rises over 10 points thanks to VNM, VIC and GAS
On Friday (June 07th), the VN-Index traded on a positive note, and closed at its highs of the day thanks to the rise of some large caps such as VHM, VIC, GAS, HVN, SAB and BID. By the closing bell, the VN-Index soared 10.07 points (-1.06%) to close at 958.28. Trading volume was nearly 150 million shares, worth VND3,300 billion. Breadth was positive, with gainers topping losers 210 to 82. Foreign investors net bought VND15 billion on the HSX, mainly in E1VFVN30.
In view of technical analysis, the VN-Index’s daily chart shows a long green candlestick called “Marubozu”, which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 960 – 970, 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 940 – 950, the next support range is expected at 920 – 930.
We recommend investors should not buy at high ask in this period, and 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 70% cash/ 30% stocks.
Please see the attached file for more details.