Identify the group of stocks that will lead the market.

The past trading week was characterized by a technical rebound in the overall market, following a sharp and deep decline. Liquidity decreased, confirming the technical nature of the rebound, with average trading value hovering around only 16,000 billion VND per session, a decrease of over 40% compared to the previous week.

According to industry statistics, telecommunications, information technology, and retail were the strongest performing sectors last week, with notable stocks such asFPT , CTR, VGI, MWG, and FRT. Conversely, real estate, industrial goods and services, electricity and water, and petroleum and gas maintained their downward trends.

Regarding which sector's stocks will lead the market in the coming period, experts seem to be focusing their attention on banking, real estate, and securities stocks, following the promising results of the Q1 2024 earnings reports from these sectors.

Bank stocks are considered "king stocks" due to their significant growth potential and pivotal role in Vietnam's economy, which is assessed by international organizations as having positive prospects. With the recent sharp decline in the VN-Index, the valuation of bank stocks has become even more attractive. Notably, projected P/E and P/B ratios for this group are trending "cheaper," driven by promising profit growth prospects. Furthermore, the influx of cash dividends from this sector is gradually attracting investor attention, thereby fueling further stock price increases.

Anticipating the recovery of the real estate market, real estate stocks are expected to offer opportunities for investors, especially in the second half of this year. Even during difficult times like 2023, real estate stocks remained a market leader. From November 2022 to November 2023, the stock market experienced a strong surge, with the VN-Index rising from 874 points to 1,245 points. This price increase was driven by the impressive recovery of real estate stocks, after many stocks lost 80-90% of their value in the second half of 2022. Overall, the ups and downs of the VN-Index in 2023 were closely linked to the fluctuations of real estate stocks.

Experts assess that favorable macroeconomic conditions such as economic recovery and improved legal frameworks (Land Law, Housing Law, Real Estate Business Law, Investment Law) are considered a driving force for real estate businesses, creating investment opportunities in this sector.

Meanwhile, the go-live of the KRX trading system, seen as an opportunity for securities companies to launch new products, expand growth potential, and drive multiple surges in this sector's stock prices, has once again failed to materialize. However, experts believe that securities companies still have many positive business opportunities.

The stock market was vibrant in the first quarter of the year, helping securities companies increase revenue and profits from their various business segments. In particular, margin lending is currently the main source of revenue for securities companies. Revenue from this segment typically accounts for 25-40% of operating revenue, and in some companies, it is even the largest contributor. In terms of profit, interest income from lending and receivables contributed more than half of the total pre-tax profit of securities companies in Q1/2024.

According to VIS Rating, the profit outlook for securities companies continues to improve after the positive growth in 2023. The sharp increase in securities trading volume and improved market sentiment amidst low interest rates will boost profits from margin lending and fixed-income investments.

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