Vietinbank Securities has published the Weekly Investment Strategy Report on 25th March, 2024 with the executive summary presented below:
- On March 20, the Fed decided to keep the interest rates unchanged at 5.25% – 5.5%, the highest level in over 20 years, and projected three 0.25 percentage point rate cuts this year. Following the meeting, the US stock market collectively showed positive signs, with both the Dow Jones and Nasdaq indices rising over 1%, while the S&P 500 recorded a gain of 0.89%. In the domestic market, the VN-Index also saw a significant increase of 17.62 points (equivalent to 1.42%).
- During the past week, there was a surprising surge of money flowing into the market, particularly on the trading session of March 18, where the trading value reached approximately 2 billion USD – the highest level since 2021. Both liquidity and trading value per session throughout the week saw significant improvements, reaching values of 30,424 billion VND and 1.23 billion shares, respectively. The strongest inflows of funds were observed in the healthcare (3.25%) and banking (2.87%) sectors.
- With money flowing back into the market and positive signals from the March policy meeting of the Fed, the VN-Index is expected to continue its upward trend and approach the resistance level of 1,300 points in the week of March 25 – March 29, 2024. Investors are advised to increasea 70/30 allocation between stocks and cash, with opportunities to purchase new stocks, while monitoring market developments around the 1,280-point mark.
- In the scenario where the index continues to record strong cash flows and surpasses the 1,280-point mark with good liquidity, investors are advised to increase their stock allocation to 90/10, with the next resistance level at 1,300 points.
- In the scenario where the market faces selling pressure and breaches the 1,280-point level, it is expected to retreat to the next support zone around 1,243 points.
- Some of the noteworthy stock groups at this time include:
- Government Infrastructure: HHV, CII, KSB
- Securities: HCM, SHS, VIX, SSI, VND
- Real estate: TCH, DIG, CEO
- Retail: DGW, MWG, MSN
- Steel: HSG, HPG
- Bank: ACB, CTG, VIB, TPB, VPB, VCB
- Textile: TNG, GIL
- Industrialized Real Estate: IDC
- Energy: PC1
- Petrolium: BSR
- Others: PNJ, GEX, DBC, HAX
