Vietinbank Securities has published the Weekly Investment Strategy Report on 08th April, 2024 with the executive summary presented below:
- On April 3, the State Bank of Vietnam (SBV) announced its readiness to sell foreign currency to intervene in case the exchange rate continues to rise sharply. This action by the SBV largely helped to reassure the market sentiment amid the USD/VND exchange rate reaching its all-time high during the past week.
- In the past week, as the issues at VNDirect were gradually resolved, money started flowing back into the market. Both liquidity and trading value per session saw slight increases compared to the previous week, reaching values of 25,457 billion VND and 1.04 billion shares, respectively. However, concerns over the negative exchange rate developments, coupled with increasing profit-taking activities, led the VN-Index to close the week at 1,255 points, representing a 2.27% decrease compared to the previous week. It’s worth noting that the strongest outflows were observed in the media (-6.25%) and financial services (-4.68%) sectors.
- With the continued complexity in the USD/VND exchange rate and investors’ cautious sentiment following the recent sharp declines, the VN-Index is expected to face downward pressure in the week of April 8th to April 12th, 2024. Investors are advised to maintaintheir equity/cash ratio to around 50/50 while monitoring the market’s developments within the range of 1,235 to 1,243 points.
- In the scenario where the index continues to observe strong inflows of funds and successfully confirms this support level, investors are advised to increase their equity/cash ratio to 90/10 and focus on stocks that are consolidating at lower prices.
- In the event that the market faces profit-taking pressure and breaks below the support zone of 1,235 – 1,243 points, the market is likely to seek the next support level around the 1,200-point threshold.
- 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
