WEEKLY INVESTMENT STRATEGY REPORT ON 29th JULY, 2024

Vietinbank Securities has published the Weekly Investment Strategy Report on 29th July, 2024 with the executive summary presented below:

• The U.S. Department of Commerce announced that the PCE index for June increased by 0.1% compared to the previous month, matching analysts’ forecasts. This data reinforces the likelihood that the Fed will begin lowering interest rates in the September policy meeting—a development that investors have been anticipating since early July
• Over the past week, the VN-Index recorded a decline of 1.79%, ranking among the top 4 worst-performing indices in the monitored basket. Notably, this trend occurred as market liquidity gradually slowed down, with both trading volume and average transaction value per session dropping significantly, reaching 667 million shares and VND 16,125 billion, respectively. By sector, the strongest outflows were observed in media stocks (-9.73%) and tourism and entertainment stocks (-7.95%).
• With investor sentiment gradually recovering after the market’s uptick at the end of last week and foreign investors showing a trend of net buying recently, the market is expected to continue its recovery momentum and fluctuate within the range of 1,235 – 1,275 points during the week of July 29 – August 2, 2024. Investors are advised to maintain a 50% ratio of stocks to cash in their portfolios. Investors are advised to maintain a stock/cash ratio of 50%.
• Investors should focus on holding stocks with promising Q2 earnings prospects and also restructure their portfolios by offloading stocks that are trading at high prices and facing strong selling pressure.
• If selling pressure continues to increase significantly, the VN-Index may adjust down to the next support level at the range 1,197 – 1,200 points.
• 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