Vietinbank Securities has published the Weekly Investment Strategy Report on 5th August, 2024 with the executive summary presented below:
- The Fed kept interest rates unchanged at its July policy meeting. This action was in line with market expectations. Additionally, the more “dovish” tone regarding inflation developments has raised expectations that the first rate cut may occur in September.
- Over the past week, the VN-Index recorded a decline of 0.44%, ranking among the top 8 worst-performing indices in the monitored basket. Notably, this trend occurred as market liquidity experienced a recovery from the previous week, with the average trading volume and value per session reaching 699 million shares and VND 16,095 billion, respectively. By sector, the strongest outflows were observed in construction and materials stocks (-4.84%) and information technology stocks (-3.93%).
- With tensions in the Middle East escalating again and negatively impacting the performance of international stock markets, the market is expected to trade within the range of 1,210 – 1,250 points during the week of August 5 – August 9, 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 Q3 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 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
- Short-term trading groups
