After a sharp decline to below 1,200 points in early August, VN-Index has had 6 consecutive sessions of increase. However, the cash flow is still very weak, causing investors holding money and those holding stocks to be confused, not knowing whether to buy or sell at this time.
By 10:00 a.m. on August 14, the VN-Index continued to recover to 1,233 points, up slightly by 3 points and marking the 6th consecutive recovery session after the plunge in early August. The HNX-Index also increased slightly to 230.47 points.
According to records, many investors sold or cut losses when VN-Index fell close to the 1,200 point mark, even breaking the 1,190 point mark on August 5.
Up to now, when the market has continuously recovered, many stocks have increased in price again but there has been no spread and the cash flow is still quite weak, many investors have fallen into a "dilemma" because "standing outside makes them impatient" but "buying in makes them afraid that the market will fall again".
Talking about this issue, Mr. Barry Weisblatt David, Director of Analysis, VNDIRECT Securities Company, said that looking further, many industry groups will bring good investment opportunities for the rest of 2024, including banking and steel.
For banks, although asset quality has deteriorated recently, it is expected to recover in the coming months as Vietnam’s economy improves. New real estate laws that came into effect on July 1 will make it easier for banks to recognize value from mortgaged assets.
Expectations of strong credit growth, exceeding the State Bank of Vietnam’s target of 15%, will boost commercial banks’ earnings. Banks are currently trading at a P/B valuation of 1.7 times, lower than the 5-year average and considered attractive.
“For the steel industry, this industrial production sector had a strong profit growth of 437.3% compared to the same period in the second quarter of 2024, Hoa Phat (HPG) grew by 129%, Hoa Sen (HSG) increased by 18 times and Nam Kim (NKG) increased by 75%... although mainly from financial profits.
Exports of steel coils and galvanized steel increased sharply in the first 6 months of the year and the recovery of the real estate market will also help boost domestic consumption," said Mr. Barry Weisblatt David.
Experts from the Analysis Department of MBS Securities Company recommend investment opportunities in a number of stock groups with stories such as logistics, public investment, textiles, oil and gas, securities, industrial park real estate, etc.
According to MBS, the sharp decline in the domestic market in the first session of last week did not stem from internal factors of the economy, so when external information subsides, investors will return to consider and buy stocks.
Compared to the short-term bottom, VN-Index has now recovered to 3% but the stock market has a stronger rebound. Many stock groups have good growth such as public investment, textiles, food, securities, technology...
“This will be a signal for cash flow to return to the market this week when many stocks have “erased” the decline in the first session of last week, even jumping higher. Technically, such stocks have a higher probability of bottoming out earlier than the general market,” said an MBS expert.
ACBS Securities Company believes that the mid-cap group (VNMID) has the best price increase rate since the beginning of the year, about 19.4%. Meanwhile, VN30 stocks have increased at the same rate as VN-Index and 22 small-cap groups have only increased by 4.2%. The P/E valuation of VN30 is still much lower than the period 2020-2024.
According to ACBS experts, opportunities in the second half of the year will be tilted towards the VN30 group (in which banking stocks account for a large proportion), especially in the context of the FED lowering interest rates and cash flow from foreign investors possibly returning to the market.
In addition, ACBS raised the outlook for the retail and consumer sectors from neutral to positive, such as FRT, MWG, PNJ, DHG, DHC, VNM... due to expectations that the recovery momentum of this sector will be stronger in the second half of the year.
Source: CafeF
