Market Update [June 11] – VN-Index inches down on mixed blue chips

11/06/2019 16:44

Report: Market Update

On Tuesday (June 11th), the VN-Index fluctuated in a narrow margin as blue chips traded mixed throughout the bourse amid a lack of fresh leads. In particular, SAB, VNM, VIC and MSN were the large-cap losers, offsetting the small gains in VCB, GAS, BID, VRE and BHN. By the closing bell, the VN-Index lost 0.83 points (-0.09%) to close at 962.07. Trading volume was nearly 140 million shares, worth VND3,200 billion. Breadth was positive, with gainers topping losers 210 to 82. Foreign investors net bought VND263 billion on the HSX, mainly in E1VFVN30 and VRE.

In view of technical analysis, the VN-Index’s daily chart shows a red candlestick called “Doji” at the resistance range of 960 – 970, which is a sign of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support level of 957, or MA200, 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 960 – 970, at which investors can sell a part of the existing short-term portfolio.

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.