Vietinbank Securities has published the Weekly Investment Strategy Report on 13th November, 2023 with the executive summary presented below:
- In his speech before IMF members on November 9, the Fed Chair continued to leave open the possibility of raising interest rates as inflation remains persistent. This statement caused the DXY index to rise back to 105.8 points as of November 10, a 0.67% increase from the previous week.
- According to the National Bureau of Statistics (NBS), China’s Consumer Price Index (CPI) decreased by 0.2% in October compared to the same period last year and dropped 0.1% compared to September. The core inflation index, which excludes food and fuel prices, only rose by a slight 0.6% in October, lower than the 0.8% recorded in September. This indicates that China continues to grapple with the risk of deflation and the potential of once again not achieving its annual inflation target of around 3%.
- The VN-Index also experienced synchronous movements with global markets, with a 1.52% increase in the past week, closing at 1,077 points. However, this upward trend has not been accompanied by confirmation in terms of liquidity and trading volume, as both indicators decreased by 12.8% and 16.1%, respectively, compared to the previous week. Among industry groups, the basic resources group saw the most significant increase, rising by 9.27%, while the retail group moved against the market’s trend, declining by 8.65%.
- With a series of stocks recording substantial profits in a short period, we anticipate an increasing trend in profit-taking during the week of November 13 – 17, causing the VN-Index to fluctuate within the narrow range of 1,085 – 1,120 points. Short-term investors are advised to partially sell stocks to preserve gains from the recent bottom-fishing. For medium and long-term investors, we recommend maintaining a stock/cash ratio at 60/40, with a portfolio focused on sectors with promising recovery prospects in 2024, such as steel (HPG, HSG, NKG), civil construction (TCD, HTN, CTD), real estate brokerage (DXS, KHG), and residential real estate (NLG, BCG, DXG, HDG).
