In yesterday's trading session (July 18), VN-Index reached its historic peak of 1,500 after 3 years. However, the index quickly faced correction pressure and closed the session up 7.27 points, to 1,497.28 points.
According to securities expert Dinh Quang Hinh - Head of Macro and Market Strategy Department, VNDirec Securities Joint Stock Company - this growth is the result of a long-term accumulation process, and also reflects a positive change in investor sentiment, with domestic and foreign cash flows unanimously moving towards stocks with good fundamentals.
In this context, according to Mr. Hinh, whether to continue investing or not depends on each investor, for example, whether the investor is investing short-term, medium-term or long-term, and whether he or she is a professional, experienced investor or not.
Stocks are about to surpass the historical peak of 1,500 points. Should we invest to catch the wave? (Illustration: Vietnamfinance).
“If you are a long-term and professional investor, you can consider investing. For short-term and inexperienced investors, this is a high-increase area. You should consider carefully and wait for the market to adjust and accumulate again before considering investing,” said Mr. Dinh Quang Hinh.
Mr. Hinh emphasized that at this time, the stock market has risen to 1,500 points, the highest in history. Therefore, in the short term, investors should limit new disbursements and wait for the market to adjust.
In case there is money to invest, investors should focus on industries with growth prospects and positive profits. In addition, priority should be given to industries that are still cheaply priced.
“Investors can choose the public investment, infrastructure and construction sectors to benefit from the Government ’s policies and growth promotion. These are forecasted to be sectors that can grow dramatically this year and still have room for price increases in the coming period.
Along with that is the banking industry. This is an industry group with positive profit growth of about 15 - 20%, while valuation is lower than the average of the past 3 years and credit growth is very positive," said Mr. Hinh.
In addition, investors can choose some other industry groups, such as the securities industry group, the story of upgrading will be a very strong driving force but it also depends on each stock. Currently, there are some stocks that are quite cheap but there are also stocks that have increased very strongly in price recently.
"Selecting this group of stocks should also be done cautiously and investors should consider groups of stocks that are priced at historical averages and have had relatively positive growth in recent times," Mr. Hinh commented.
Mr. Nguyen The Minh, Director of Research and Development of Individual Clients of Yuanta Securities Vietnam, also highly appreciated the stock market for its positive developments and re-establishing the peak of 1,500 points in 2022.
“This could be a good opportunity for investors to sell stocks to take profits or disburse funds to buy stocks with great potential. However, investors need to be alert and have a scenario to proactively respond to all market fluctuations so that investment results are sustainable,” said Mr. Minh.
Mr. Nguyen The Minh said that if we look at stock groups according to market valuation compared to the 5-year average, many stock groups in the non-financial sector are higher.
“In the short and medium term, the valuation of financial stocks such as securities, banks, and real estate is still very low. Therefore, the shift of investors' cash flow will focus on this group, in which banks lead, followed by securities and then real estate.
In addition, other growth groups such as infrastructure, public investment, construction, construction materials, etc. also benefit because we promote public investment disbursement from now until the end of the year," Mr. Minh commented.
According to Mr. Minh, stocks in the technology, retail, food, and industrial real estate industries also have the opportunity to grow strongly at the end of the year.
Mr. Dang Tran Phuc, Chairman of the Board of Directors of AZfin Vietnam Joint Stock Company, said that although the stock market has "dropped" the 1,500 point mark, in the long term, the stock market's prospects are still linked to the economic growth target. If the economy achieves the expected growth rate, the stock market will certainly grow accordingly.
In the short term, according to the assessment of the State Securities Commission and many international financial organizations, the Vietnamese stock market is likely to be upgraded from a frontier market to an emerging market by FTSE in 2025. The upgrade will attract more attention from international institutional investors, thereby creating strong growth momentum for the market.
With the current converging factors, it is only a matter of time before the VN-Index continues to surpass the 1,500-point mark. However, the stock index has increased by nearly 30% in a short period of time, so the market may soon experience a correction to continue to grow more sustainably.
“In the current context, we recommend that investors should be cautious in investing and limit buying following excitement because they may face the risk of correction after a strong increase,” said Mr. Phuc.
PHAM DUY - Vtcnews.vn
Source: https://vtcnews.vn/chung-khoan-sap-vuot-dinh-lich-su-1-500-diem-co-nen-dau-tu-don-song-ar955067.html
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