Has market valuation reached an attractive level?

Investment analysis

VNDirect Securities: Technically, the VN-Index shows signs of forming a short-term bottom and recovering after falling to its lowest point of 1,218 points in the past trading week. Notably, selling pressure has weakened significantly, while demand showed slight improvement in the final trading sessions of the week.

VNDirect expects the main index to consolidate and accumulate again in the 1,230-1,260 point range. Market valuations have become more attractive, and medium- and long-term investors can begin building portfolios for the next 6-12 months, focusing on sectors with improved business prospects such as banking, consumer goods and retail, and import/export.

Meanwhile, short-term traders need to wait for the market to confirm the short-term trend and for an improvement in cash flow before increasing their stock holdings.

Viet Dragon Securities (VDSC): The continued low liquidity indicates that supply is not yet putting pressure on the market. Cash flow has also not improved, despite the market having a fairly good gain at the end of the week.

Accordingly, the market is likely to continue in a state of support and supply exploration. The resistance zone of 1,245 - 1,250 points is expected to put supply pressure on the market in the coming period. Investors should remain cautious given the market's instability and maintain a safe portfolio allocation.

According to SHS Securities, in the short term, the VN-Index tends to retest the price level around 1,255 points.

Saigon - Hanoi Securities (SHS): In the short term, the VN-Index is trending towards retesting the price level around 1,255 points, which was the highest price level in 2023.

In a positive scenario, the index needs to break above the resistance zone around 1,255 points to improve the short- and medium-term trend.

On the positive side, the market is highly differentiated, with many stocks showing good price increases, aiming to surpass their previous peaks thanks to positive Q2/2024 business results, such as some stocks in the industrial real estate, gas distribution, plastics, oil and gas transportation, and petroleum sectors. Some technology stocks are also trending towards recovering to their previous highs.

Regarding the medium-term trend, SHS assesses it as less positive, as the VN-Index has failed to maintain the upward trend line extending from November 2023 to the present, as well as the equilibrium price range of 1,245 - 1,255 points.

Stock market news brief

Vietnam attracted over US$18 billion in FDI, a 10.9% increase compared to the same period last year. According to the latest report from the Foreign Investment Agency ( Ministry of Planning and Investment ), as of July 20, 2024, total foreign direct investment (FDI) into Vietnam, including new registrations, adjustments, and capital contributions through share purchases by foreign investors, reached over US$18 billion, a 10.9% increase compared to the same period in 2023.

Bac Ninh leads with a total registered investment capital of nearly 3.2 billion USD, accounting for almost 17.8% of the total investment capital nationwide, more than three times higher than the same period last year. Following closely behind is Quang Ninh with over 1.56 billion USD, accounting for 8.7% of the total registered investment capital and more than 2.2 times higher than the same period last year.

Ho Chi Minh City ranked third with a total registered investment capital of nearly US$1.55 billion, accounting for almost 8.6% of the total investment capital nationwide. This was followed by Ba Ria - Vung Tau, Hanoi, and Hai Phong, respectively.

Wood exports are showing positive growth, expected to exceed targets. Statistics from the General Department of Customs show that wood export turnover up to the end of July 2024 is estimated at over 8.7 billion USD, an increase of 21% compared to the same period in 2023. Exports of wood products alone are estimated at over 5.96 billion USD, an increase of more than 22% compared to the same period in 2023.

The Import-Export Department (Ministry of Industry and Trade) notes that, according to the annual cycle, the trend of increasing imports of wood and wood products, especially wooden furniture, in major markets usually surges in the last three months of the year, when the housing market is nearing completion and there is a demand for purchasing and renovating interior furnishings to welcome the new year.

With market bottlenecks removed and the current growth rate, the outlook for wood and wood product exports is projected to continue maintaining double-digit growth.

Source: https://www.nguoiduatin.vn/lang-kinh-chung-khoan-29-7-dinh-gia-thi-truong-da-ve-muc-hap-dan-204240728205425313.htm