Vietinbank Securities has published the Weekly Investment Strategy Report on 13th May, 2024 with the executive summary presented below:
- The sharp increase in domestic gold prices, along with the significant difference compared to global gold prices, may exert considerable pressure on the USD/VND exchange rate, especially as gold prices surge. As of May 10, 2024, the USD/VND exchange rate has reached 25,455 VND, nearing the historical peak on April 22, 2024.
- In the past week, the VN-Index recorded its third consecutive weekly recovery with a gain of 1.97%, placing it among the top 4 strongest performing indices in the tracked basket. Notably, there are signs of money flowing back into the market, as both liquidity and average trading value per session increased significantly compared to the previous week, reaching values of 799 million shares and 19,783 billion VND, respectively. In terms of sectors, the strongest influx of funds was observed in the oil and gas sector (10.53%) and the tourism and entertainment sector (9.7%).
- With signs of money returning to the market and the continuous strong flow of FDI capital into Vietnam as indicated by the data for the first four months of the year, the market is forecasted to maintain its upward trend and surpass the resistance level of 1,250 points in the week of May 13 to May 17, 2024. Investors are advised to seize the market correction to increase the proportion of stocks to about 60% of their portfolio.
- Investors are advised to maintain a stock allocation of around 30% during the early part of the week.
- In case the index faces pressure and adjusts to the range of 1,215 – 1,220 points, investors may proactively increase their stock allocation to around 60% of their portfolio.
- 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
