Market Update [June 17] – VN-Index loses 950 after falling nearly 7 points

17/06/2019 16:12

Report: Market Update

On Monday (June 17th), the VN-Index traded on a negative note, and closed at its lows of the day, highlighting the poor performance of “Vingroup stocks” such as VIC, VHM and VRE. By the closing bell, the VN-Index lost 6.66 points (-0.70%) to close at 946.95. Trading volume was over 170 million shares, worth VND4,000 billion. Breadth was negative, with losers topping gainers 184 to 118. Foreign investors net bought VND103 billion on the HSX, mainly in POW.

In view of technical analysis, the VN-Index’s daily chart shows a long red candlestick, and loses the support level of 950, or MA150, which are the signs of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 930 – 940, the next support range is forecast at 910 – 920. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 950 – 960, 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 range of 930 – 940 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.