Vietinbank Securities has published the Weekly Investment Strategy Report on 4th March, 2024 with the executive summary presented below:
- According to S&P Global, the Purchasing Managers’ Index (PMI) for Vietnam’s manufacturing sector reached 50.4 in February, slightly up from 50.3 in January, marking the second consecutive month above the 50-point threshold. Particularly positive aspects of the latest PMI survey include a rebound in employment and business confidence reaching its highest level in a year. However, overall growth remains relatively weak, leading companies to continue exercising caution in their purchasing activities and inventory management.
- During the past week, there was a continued influx of funds into the market, boosting liquidity and average trading value per session to 978 million shares and 23,315 billion dong, respectively. In terms of industry sectors, the financial services sector saw a strong inflow of funds, with a growth of 4.37%, while the basic materials sector also experienced significant investment, recording a growth of 6.9%.
- With the continued strong influx of funds into the market for the second consecutive week, with the average trading value per session exceeding 20,000 billion dong, the VN-Index is forecasted to maintain its upward trend in the week of 04.03 – 08.03. Investors are advised to increase their stock/cash ratio to 90/10 and monitor the market’s movements at the 1,255-point level.
- If this resistance level is surpassed with sustained positive inflows of funds, the index is likely to continue its upward trend and head towards the resistance zone of 1,265 to 1,270 points.
- In case the index fails to surpass this resistance level, it is likely to retreat to the short-term support at the range 1,200 – 1,212 points and consolidate around this level.
- Some of the noteworthy stock groups at this time include:
- Government Infrastructure: HHV
- Securities: HCM, SHS, VIX, SSI
- Real estate: TCH, DIG, CEO
- Retail: DGW, MWG, MSN
- Steel: HSG
- Bank: ACB, SSB, VIB, TPB, VPB
- Textile: TNG
- Industrialized Real Estate: IDC
- Energy: PC1
- Petrolium: BSR
- Others: GVR, PNJ, GEX, DBC
