Market Update [June 13] – VN-Index posts 3-day losing streak on weak bluechips
On Thursday (June 13th), although losing nearly 8 points at its lows of the day, however, the VN-Index cut the losses thanks to the late bottom fishing demand in ATC session. Particularly, most of large caps fell, dragging the index down. By the closing bell, the VN-Index lost 4.09 points (-0.43%) to close at 950.08. Trading volume was over 140 million shares, worth VND3,300 billion. Breadth was negative, with losers topping gainers 160 to 116. Foreign investors net sold VND80 billion on the HSX, mainly in VHM.
In view of technical analysis, the VN-Index’s daily chart shows a red candlestick called “Pin bar” at the support level of 950, or MA150, which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will return to fill the common gap of 952 – 954, the next resistance level will be forecast at 957, or MA200. 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 90% cash/ 10% stocks.
Please see the attached file for more details.