Market Update [July 29] – VN-Index ends higher thanks to VIC, VCB and GAS

29/07/2019 16:30

Report: Market Update

On Monday (July 29th), although losing over 5 points at one point, however, the VN-Index regained the ground thanks to the rise of some large caps such as VIC, VCB and GAS. Particularly, VIC rose 1.88%, VCB rose 3.19% and GAS rose 2.78%. By the closing bell, the VN-Index added 4.59 points (+0.46%) to close at 997.94. Trading volume was nearly 150 million shares, worth VND3,600 billion. Breadth was negative, with losers topping gainers 192 to 110. Foreign investors net bought VND9 billion on the HSX, mainly in VCB and CTD.

In view of technical analysis, the VN-Index’s daily chart shows a green candlestick called “Hammer”, dwelling above the MA5, which is a sign of positivity. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 1.000 – 1.010, 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 980 – 990, the next support range is expected at 960 – 970.

We recommend investors to observe carefully the resistance range of 1.000 – 1.010, any correction in this period may be an opportunity to increase stock proportion in the medium and long-term portfolio. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.