WEEKLY INVESTMENT STRATEGY REPORT ON 17th JUNE, 2024

Vietinbank Securities has published the Weekly Investment Strategy Report on 17th June, 2024 with the executive summary presented below:

• On June 13, the Fed kept the interest rate unchanged at the range of 5.25% – 5.5%, marking the seventh consecutive time since the meeting in September 2023. Fed officials’ average forecast indicates only 1-2 rate cuts in 2024, down from 3 times predicted in the March 2024 meeting. The Fed’s decision to maintain the interest rate was in line with prior market forecasts. Although the Fed’s stance is more hawkish compared to the March meeting, it still provided positive signals about potential rate cuts, with the earliest in September.
• Last week, the VN-Index recorded a decrease of 0.6%, ranking among the top 8 indices with the largest declines in the monitored group. The average trading volume and value per session last week were 883 million shares and 23,827 billion VND, respectively. In terms of sectors, the strongest net outflows were seen in the insurance sector (-1.83%) and the real estate sector (-0.63%).
• With the USD/VND exchange rate continuing to cool down to 25,410 VND and domestic investor sentiment gradually stabilizing, the market is forecasted to continue its upward trend and approach the resistance level of 1,300 points during the week of June 10–14, 2024. Investors are advised to maintain a stock/cash ratio of 60%.. Investors are advised to maintain a stock/cash ratio of 60%
  • Investors should carefully select stocks to participate in and only hold stocks that have good accumulation bases and unique growth stories.
  • If selling pressure continues to persist, the index will continue to move sideways within the range of 1,260 – 1,300 points. Investors need to restructure their portfolios for stocks that are already anchored at high prices, facing strong selling pressure, or lacking attractive growth stories.
• 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
  • 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