Which stocks to invest in 2023?

Many stocks at attractive prices

On the afternoon of February 15, FiinGroup Vietnam coordinated with Vietnam Economic Magazine (VnEconomy) to organize the seminar "Investment Highlights 2023 - FiinGroup Invest Summit". This is an event organized annually by FiinGroup - an organization specializing in financial data analysis and credit rating in Vietnam at the beginning of each year, with the desire to provide investors with an independent, in-depth analytical perspective on the main investment channels in the capital market in our country.

Ms. Do Hong Van, Head of Securities Analysis Department at FiinGroup

At the seminar, experts and the FiinGroup team gave professional opinions on macroeconomics, real estate market, banking market as well as investment opportunities in the stock and corporate bond markets.

Assessing the stock market, Ms. Do Hong Van, Head of Securities Analysis Department at FiinGroup, said that the VN-Index has decreased by about 30% from its peak, and average liquidity has also decreased by 60%. If looking at the recent 5-month series, liquidity is establishing a level 3-4 times higher than the period before Covid-19.

This is quite a positive point in the context of a sharp decrease in margin debt (nearly 80% of the margin granted in 2021 has been recovered) and strong net selling by individual investors (about 47,000 billion VND from the beginning of 2022 to present, equivalent to half of the net buying value in 2021).

According to Ms. Van, with the sharp declines in stock prices in 2022, the valuation level of the whole market has also decreased. At the same time, the P/E of the whole market is at a relatively low level (11.8x) thanks to the large contribution of profits from the banking sector; while the less positive profit outlook for 2023 has not been reflected in prices in some industries such as real estate (mainly residential real estate), chemicals, fertilizers, seafood, and garments.

In addition, Ms. Van also said that the stock market has seen many stocks with low and attractive valuations due to prices being affected by the general downward trend, while the 2023 profit outlook of some industry groups is still assessed positively.

However, Ms. Van noted that investors should also monitor foreign cash flow trends and be cautious with the move to reduce the scale of net purchases in ETFs and reduce the proportion of cash in active funds.

3 suggestions for choosing investment stocks

In the current macro and market context, based on the assessment of 2023 profit prospects as well as price movements and valuations by industry, Ms. Van gives 3 suggestions on choosing investment stocks.

Experts suggest promising stocks in 2023

Specifically, the first is stocks in the banking, information technology, electricity (excluding hydropower), and industrial real estate sectors; especially stocks of enterprises in sectors with profit growth expected to be maintained in 2023, with stock valuations at historic lows with prices affected by the general downward trend of the market.

Second, stocks in the construction materials, water and pharmaceuticals industries: you can pay attention to stocks of businesses in industries that are expected to have a breakthrough in profit growth in 2023. Positive profit prospects are expected to support improving stock valuations, creating room for price increases.

Third is steel industry stocks, because this is an industry with a less positive 2023 profit outlook that has been reflected in the stock price.

Source: https://thanhnien.vn/dau-tu-co-phieu-nao-trong-nam-2023-185230215164148876.htm