Market Update [June 25] – VN-Index closes lower on mixed blue chips

25/06/2019 17:16

Report: Market Update

On Tuesday (June 25th), the VN-Index fluctuated in a narrow margin as blue chips traded mixed throughout the bourse amid a lack of fresh leads. In particular, VCB, GAS, BID, PLX, CTG, TCB and HVN were the large-cap losers, offsetting the small gains in VNM, SAB, NVL and FPT. By the closing bell, the VN-Index lost 2.72 points (-0.28%) to close at 960.13. Trading volume was over 160 million shares, worth VND3,600 billion. Breadth was negative, with losers topping gainers 180 to 104. Foreign investors net sold VND58 billion on the HSX, mainly in SBT.

In view of technical analysis, the VN-Index’s daily chart shows a short red candlestick called “Inverted hammer” at the support level of 960, which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance level of 965, or MA50, the next resistance range will be forecast at 970 – 980. In a negative scenario, the nearest support range of VN-Index is forecast at 950 – 960, the next support range is expected at 930 – 940.

We recommend investors to observe carefully the support range of 950 – 960, at which investors can buy a part of the short-term portfolio, and consider cutting loss if this range is broken. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.