Vietinbank Securities has published the Weekly Investment Strategy Report on 24th June, 2024 with the executive summary presented below:
- On June 20, the Swiss National Bank (SNB) cut the key interest rate by 25 basis points, bringing it down to 1.25%. This move comes in the context of the SNB projecting inflation to be at 1.3% in 2024, 1.1% for 2025, and 1% for 2026, assuming the interest rate remains at 1.25% throughout this period.
- In the past week, the VN-Index recorded a 0.16% increase, ranking among the top 6 indices with the highest growth in the monitored basket. However, this increase has yet to receive strong support from cash flow, with average daily trading volume and value for the week reaching 896 million shares and 23,358 billion VND, respectively. In terms of sectors, the strongest inflows were recorded in the tourism and entertainment (10.13%) and automotive and parts (4.11%) sectors.
- With the market entering a period of low information and the previous week’s increase not supported by strong cash flow, the market is expected to continue sideways within the range of 1,270 – 1,295 points during the week of June 24 – 28, 2024. Investors are advised to maintain a stock/cash ratio of 60%.. Investors are advised to maintain a stock/cash ratio of 60%
- Investors should carefully select stocks to participate in and only hold stocks that have good accumulation bases and unique growth stories.
- If the index shows positive performance and returns to surpass the 1,300-point range with strong liquidity, investors are advised to increase the stock ratio to 80% of their portfolio.
- Some of the noteworthy stock groups at this time include:
- Short-term trading groups
- Securities: SHS
- Real estate: DIG
- Others: CTR, GEX, VTP, CTD, ANV, AAA, DPM
- Medium-term holding groups
- Energy: PC!
- Petrolium: BSR
- Textile: TNG, GIL, TCM, MSH
- Long-term holding groups
- Steel: HPG, HSG, NKG
- Bank: ACB, MBB, SHB
- Retail: DGW, MWG, MSN
- Industrialized real estate: KBC, IDC, VGC
- Short-term trading groups
