Vietinbank Securities has published the Weekly Investment Strategy Report on 20th May, 2024 with the executive summary presented below:
- U.S. CPI decreased as expected in April. Specifically, the annual unadjusted CPI rate in the U.S. for April was 3.4%, lower than the 3.5% from the previous month and in line with market expectations. The core monthly CPI rate for April decreased to 0.3% as anticipated, the lowest since last December. The cooling inflation in April may bring some optimism for the Fed and allow its officials to maintain their stance on interest rates more comfortably in the upcoming meeting.
- During the past week, the VN-Index recorded its fourth consecutive week of recovery with a 2.28% increase, ranking as the second strongest performer in the monitored basket of indices. Notably, capital flow continued to return to the market, with average daily trading volume and value increasing slightly compared to the previous week, reaching 817 million shares and VND 20,149 billion, respectively. In terms of sectors, the strongest capital inflows were recorded in the information technology sector (4.77%) and the basic materials sector (3.48%).
- With capital flows continuing to return to the market and the DXY index showing signs of cooling off following the April CPI data, which helps alleviate pressure on the USD/VND exchange rate, the market is expected to maintain its upward trend and approach the 1,300-point resistance level in the week of May 20 – May 24, 2024. Investors with a stock allocation of 40% – 70% of their portfolio should consider increasing it by an additional 20% – 30% during market fluctuations.
- Investors should be cautious about buying new shares of stocks that have reached their peak increase and should prepare to take profits with these stocks.
- In the coming weeks, it is expected that the VN-Index will maintain a wide accumulation range in the current point range after statistics indicate that inflation in the US is starting to weaken and domestic exchange rates begin to cool down following the intervention measures by the State Bank of Vietnam (SBV).
- 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, STB
- Textile: TNG, GIL
- Industrialized Real Estate: IDC
- Energy: PC1
- Petrolium: BSR
- Others: PNJ, GEX, DBC, HAX
