Market Update [June 18] – VN-Index cuts losses thanks to bargain hunters

18/06/2019 16:32

Report: Market Update

On Tuesday (June 18th), although losing over 8 points at its lows of the day, however, the VN-Index cut the losses as bargain hunters moved in. In particular, MSN, TCB, VIC, VNM, VRE and VJC were the large-cap losers, offsetting the small gains in VCB, HPG, HVN and MWG. By the closing bell, the VN-Index lost 2.94 points (-0.31%) to close at 944.01. Trading volume was nearly 170 million shares, worth VND4,000 billion. Breadth was negative, with losers topping gainers 173 to 113. Foreign investors net bought VND16.5 billion on the HSX, mainly in POW.

In view of technical analysis, the VN-Index’s daily chart shows a red candlestick called “Pin bar” at the support range of 940, 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 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.