Portfolio management and stock selection opportunities for investors

According to stock experts, the VN-Index's plunge last week amid much good news for the economy is an opportunity for investors to restructure their portfolios and choose stocks according to their business "taste".

VN-Index “plummeted” to 1,270 points

Looking back at the stock market developments last week, after continuously trying to surpass the 1,300 mark without success, the VN-Index had two consecutive sessions of decline. After losing the 1,280-point mark, the VN-Index continued to decline further at the end of the week to 1,270.6, down 7.5 points (-0.59%) compared to the previous session.

Market breadth is tilted towards the selling side. On the HOSE floor, the number of stocks decreasing in price is more than double that of stocks increasing, 230 stocks decreased and 95 stocks increased.

Liquidity at the end of the week also recorded a lower order matching level of about 11% compared to the average of the last 20 sessions, down to nearly 15,500 billion VND in the whole market, of which the HOSE floor alone was more than 13,700 billion VND.

Lacking support from pillar stocks, VN-Index continues to plummet (Photo: SSI iBoard)

The VN30 group decreased by more than 10 points, of which, VNM (Vinamilk, HOSE) decreased the most with 2.56%. Followed by stocks that decreased by less than 1% such as CTG (VietinBank, HOSE), BCM (Becamex, HOSE), ACB (ACB, HOSE), HDB (HDBank, HOSE), MBB (MBBank, HOSE), ...

On the contrary, 5 stocks that went against the market trend increased in price: PLX (Petrolimex, HOSE), POW (PV Power, HOSE), GAS (PV Gas, HOSE), MWG (Mobile World, HOSE), FPT (FPT, HOSE).

The "bright spot" last week belonged to foreign transactions, capital flows showed more positive net buying signals in the middle sessions of the week.

A stock "going against the trend" increased nearly 220% after 7 trading sessions

Facing the negative trend of the whole market, VDG stock (Van Dat Group JSC, UPCoM) has "hotly increased" 218% after only 7 trading sessions, of which 6 sessions "increased to the ceiling", reaching a market price of 35,000 VND/share.

It is known that VDG debuted on UPCoM on September 26 at 11,000 VND/share. In the first session, this real estate stock code increased by 40% compared to the debut price.

Thanks to that, Van Dat Group's market capitalization increased from 50 billion VND to 175 billion VND after only the first 7 sessions on the Vietnamese stock exchange.

With this development, the company has explained that the stock trading fluctuations come from the direct influence and control of the general situation of the stock market and investor psychology, the ceiling increase is beyond the company's control.

In addition, according to the announcement, net revenue at VDG in the first 6 months of the year reached 110.5 billion VND, profit after tax was 1.1 billion VND, completing 47% and 37.6% of the yearly plan respectively.

Van Dat Group currently operates mainly in the textile and garment yarn business. The company has invested in a yarn manufacturing company but only owns 16% and is having to make provisions.

Series of changes in the "hot seats" of chairman and general director

Recently, in addition to unpredictable developments on the stock exchange, high-level personnel changes have been recorded in many businesses.

Saigon Real Estate Corporation Saigonres (SGR, HOSE) has just approved the dismissal of Mr. Kieu Minh Long as an independent member of the Board of Directors and elected Ms. Nguyen Thi Kim Quyen to replace him.

Loc Phat Vietnam Commercial Joint Stock Bank – LPBank (LPB, HOSE) has announced the appointment of Mr. Vu Quoc Khanh as permanent Deputy General Director as of October 4. At the same time, it was announced that Mr. Ho Nam Tien will no longer hold the position of General Director but will hold the position of permanent Vice Chairman of the Board of Directors of LPBank.

Vietnam Export Import Commercial Joint Stock Bank – Eximbank (EIB, HOSE) reappointed Mr. Nguyen Hoang Hai as Acting General Director of Eximbank, effective from October 3 for a period of 3 years. Mr. Hai was a member of ABBank Investment Council, Deputy General Director of ABBank Asset Management, member of the Board of Directors and General Director of Electricity Finance Joint Stock Company (EVN Finance).

Dien Quang Group Joint Stock Company (DQC, HOSE) will close the shareholder list on October 18 regarding the request for opinions on changing the legal representative from Mr. Ho Quynh Hung to Mr. Tran Quoc Toan. The time for collecting opinions is from October 31 to November 11.

Ha Do Group Joint Stock Company (HDG, HOSE) has just dismissed Mr. Nguyen Trong Thong from the position of Chairman of the Board of Directors according to his personal wishes. At the same time, HDG elected Mr. Le Xuan Long to hold the position of Chairman of the Board of Directors from October 3 for the term 2024 - 2029. HDG also appointed Mr. Nguyen Trong Minh to the position of General Director.

6 UPCoM stocks have the opportunity to move to HOSE

Currently, the top 6 stocks with the largest capitalization on the UPCoM floor include: VGI (Viettel Global, UPCoM), ACV (Vietnam Airports Corporation, UPCoM), MCH (Masan Consumer, UPCoM), MVN (Vinalines, UPCoM), BSR (Binh Son Oil Refinery, UPCoM), VEA (VEAM, UPCoM) all have the same "story" about moving the floor to HOSE.

In particular, BSR has submitted its listing application after successfully clearing the overdue debt of VND1,127 billion of BSR-BF by declaring bankruptcy. MBS Research assesses that BSR will officially list on HoSE from the beginning of 2025.

MCH has been steadily increasing on the floor in recent times (Photo: SSI iBoard)

Recently, the Board of Directors of Masan Consumer Goods Corporation (MCH, UPCoM) under Masan Group also approved the transfer of shares to HOSE and is expected to complete in 2025.

BSC Research assessed that if all 6 stocks above successfully transferred to HoSE, ACV and BSR would be in the VN30 group, while POW and BVH would be eliminated. VGI and MVN stocks do not meet the criteria for free-float adjusted capitalization value, while MCH does not meet the criteria for trading volume.

At the same time, BSC also noted the upcoming index review in January 2025. In case HOSE does not change the index calculation rules, as of September 30, 2024, LPB (LPBank, HOSE) is eligible to enter VN30. This means that POW is at risk of being removed from VN30.

As of October 4, LPB's capitalization ranked behind 16 companies in the VN30 group. Stocks on the UPCoM floor also have "huge" capitalization, with ACV and VGI ranking 3rd and 4th respectively in terms of capitalization, surpassing many other famous enterprises such as Vingroup (VIC, HOSE), FPT (FPT, HOSE), Hoa Phat (HPG, HOSE), and Vinamilk (VNM, HOSE).

Comments and recommendations

Mr. Nguyen Chi Hieu, investment consultant, Mirae Asset Securities, commented that although the short-term technical developments are not good, along with concerns clearly shown through liquidity, this is also a good period to accumulate stocks.

Market is under short-term concern, opportunity to accumulate

For investors, portfolio management and stock selection will be very important during this time, especially when the market has been increasing continuously in the form of individual stocks over the past 6 months, without any specific industry leading. In addition, it is necessary to maintain a safe cash ratio to be able to buy in deep swings in the context of a low liquidity and very sensitive market.

Choosing stocks for the next period, investors can consider two directions: Focus on groups of stocks that will benefit from China's economic stimulus: Including commodity industries such as: Steel, Rubber, Fertilizer; Focus on Vietnam's strong economic recovery, including: Public investment, Banking, Securities.

SSI Securities said the market is likely to recover slightly to the 1,279 point area, however, the short-term correction trend has not ended yet.

KB Securities assessed that the market is still leaning towards the group of stocks that are losing support, the index is losing support mainly from large-cap stocks. VN-Index has a chance to recover around the support zones. Investors can combine buying with adding a portion of trading proportion when the index and target stocks adjust back to the support zone of 1,255 points.

Dividend schedule this week

According to statistics, there are 24 enterprises that have dividend rights from October 7-11, of which 21 enterprises pay in cash, 2 enterprises pay in shares and 1 enterprise pays bonus shares.

The highest rate is 200%, the lowest is 1%.

2 companies pay by stock:

Khanh Hoa Power Corporation (KHP, HOSE) closed the ex-right trading date on October 11, at a rate of 40%.

ILA JSC (ILA, UPCoM) closed the ex-right trading date on October 8, at a rate of 16.6%.

1 company pays stock bonus:

Green+ Group Corporation (GPC, UPCoM) closed the ex-right trading date on October 9, at a rate of 33%.

Cash dividend payment schedule

*Ex-right date: is the transaction date on which the buyer, upon establishing ownership of shares, will not enjoy related rights such as the right to receive dividends, the right to purchase additional issued shares, but will still enjoy the right to attend the shareholders' meeting.

Code	Floor	GDKHQ Day	Date TH	Proportion
ANV	HOSE	11/10	12/27	5%
D2D	HOSE	11/10	October 30	87%
SHP	HOSE	11/10	10/25	20%
USC	UPCOM	11/10	10/23	1.1%
X20	HNX	11/10	10/28	6%
PNC	HOSE	10/10	11/11	5%
YTC	UPCOM	10/10	October 31	1.62%
ITS	UPCOM	9/10	10/25	1%
SLS	HNX	9/10	4/11	200%
BVS	HNX	9/10	10/22	8%
SKH	UPCOM	9/10	October 30	21%
SBM	UPCOM	9/10	10/25	10%
TLP	UPCOM	9/10	10/25	2.5%
TKA	UPCOM	9/10	10/24	8%
TCT	HOSE	9/10	11/14	5%
STW	UPCOM	8/10	10/18	9.36%
E29	UPCOM	8/10	10/18	5%
SBB	UPCOM	8/10	10/22	5%
NHT	HOSE	7/10	10/22	10%
BTP	HOSE	7/10	October 31	1.45%
RTB	UPCOM	7/10	8/11	22%

Source: https://phunuvietnam.vn/chung-khoan-tuan-7-10-11-10-co-hoi-quan-tri-danh-muc-va-lua-chon-co-phieu-cho-nha-dau-tu-20241007082909553.htm