Vietinbank Securities has published the Weekly Investment Strategy Report on 26th February, 2024 with the executive summary presented below:
- In the two sessions on February 20th and 21st, the State Bank of Vietnam (SBV) injected more than 6,000 billion VND through the Open Market Operations (OMO) channel to a member, with an interest rate of 4% per annum and a term of 7 days. The increasing interbank interest rates, along with the SBV’s need to inject money through the OMO channel, may indicate that liquidity is no longer in a state of excess as it was in the second half of 2023.
- During the past week, capital continued to flow into the market, boosting liquidity and the average trading value per session to 1.04 billion shares and 23,681 billion VND respectively. However, increasing profit-taking pressure and concerns about the sharp appreciation of the USD/VND exchange rate caused the market to decline sharply in the session on February 23rd, erasing the gains from previous sessions. In terms of sectors, capital flow was particularly strong into the chemical (8.43%) and real estate (6.33%) sectors.
- With investors becoming more cautious following the sharp decline on February 23rd, the VN-Index is expected to consolidate sideways within the narrow range of 1,200 to 1,220 during the week of February 26th to March 1st, 2024. Investors are advised to decrease a stock/cash ratio of 70/30 while monitoring market developments around the 1,212 level.
- If this resistance level is surpassed with sustained positive inflows of funds, the index is likely to continue its upward trend and head towards the resistance zone of 1,247 to 1,255 points.
- In case the index fails to surpass this resistance level, it is likely to retreat to the short-term support at 1,174 points and consolidate around this level.
- Some of the noteworthy stock groups at this time include:
- Government Infrastructure: HHV
- Securities: HCM, SHS, VIX, SSI
- Real estate: TCH, DIG
- Retail: DGW, MWG
- Steel: HSG
- Bank: ACB, SSB, VIB, TPB
- Textile: TNG
- Industrialized Real Estate: IDC
- Energy: PC1
- Others: GVR, PNJ, GEX, DBC
