Vietinbank Securities has published the Weekly Investment Strategy Report on 6th May, 2024 with the executive summary presented below:
- In the May policy meeting, the Fed decided to keep interest rates unchanged in the range of 5.25% – 5.5% – the highest level in 23 years and has been maintained since July 2023. However, the Fed will slow down the pace of balance sheet contraction from June this year. The decision to maintain the Fed’s interest rates aligns with the market’s predictions. This decision was made because the Fed believes that “the progress towards the 2% inflation target has been insufficient” in recent months.
- During the past week, the VN-Index recorded its second consecutive week of recovery with a 0.95% increase, ranking it among the top 4 indices with the strongest gains in the observed basket. However, investor sentiment remained cautious, with both liquidity and average trading value per session continuing to decline compared to the previous week, reaching values of 607 million shares and 15,713 billion VND, respectively. In terms of sectors, the strongest capital inflows were observed in the retail (3.88%) and information technology (3.46%) sectors.
- With signs of money flowing back into the VN30 group at the end of last week and the recent PMI index indicating positive signals for the domestic manufacturing and business environment, the market is expected to maintain its recovery trend in the week of May 6 to May 10, 2024. Investors are advised to maintain a stock/cash ratio of 30/70
- Investors are taking profit on stocks they bought at the bottom earlier, as the current rebound is not suitable for initiating new strong buying positions but rather for short-term trading.
- In case the index confirms successful bottom fishing activity and validates long-term support in the range of 1,170 to 1,175 points, investors are advised to increase their position in stocks belonging to suitable price ranges with ample room for price appreciation.
- 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
