Market Update [June 26] – VN-Index loses 960 after falling 1 point

26/06/2019 17:17

Report: Market Update

On Wednesday (June 26th), although rising nearly 3 points at one point, however, the VN-Index lost the ground to close at its lows of the day due to high selling pressure in bank stocks. In particular, VCB, VHM, TCB, HVN and CTG were the large-cap losers, offsetting the small gains in GAS, VIC, MSN, BID, PLX and NVL. By the closing bell, the VN-Index lost 1.00 points (-0.10%) to close at 959.13. Trading volume was over 250 million shares, worth VND5,600 billion. Breadth was negative, with losers topping gainers 144 to 150. Foreign investors net bought VND159 billion on the HSX, mainly in BID.

In view of technical analysis, the VN-Index’s daily chart shows a short green candlestick called “Doji” at the support range of 950 – 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.