Identifying 3 "wave-leading" industry groups in the coming time

Speaking about the recent vibrancy of the stock market at the seminar "Stock Market: Building the Foundation - Accumulating - Accelerating," Mr. Ho Sy Hoa - Director of Research and Investment Consulting at DNSE Securities Company - attributed it to a combination of factors.

Regarding external factors, global markets are expecting the US Federal Reserve (Fed) to cut interest rates as early as 2024, possibly around May.

Regarding the internal factors of the economy , the market has witnessed a clear recovery in the macroeconomic foundation across all major components of the economy, from industrial production and the manufacturing sector to FDI and import-export activities.

In terms of monetary and fiscal policy, the State Bank of Vietnam has taken very positive steps since the beginning of the year, such as providing a 15% credit limit for banks, actively supporting businesses and the economy in 2024, thereby positively impacting the stock market this year.

Currently, some leading businesses have recovered from their lows, for example, the steel sector. According to Mr. Hoa, to continue supporting the recovery of businesses, the top priority is reducing the cost of capital, specifically lowering interest rates by banks. This is a solution that needs to be continued in the short term.

Meanwhile, Mr. Tran Hoang Son - Director of Market Strategy at VPBank Securities Company - believes that this year is a transitional year after profits bottomed out in 2023. Businesses will return to higher growth rates than the low base.

“The stock market is in a new uptrend cycle. This uptrend stems from two factors. Firstly, policy direction; we have growth momentum in the next two years for the emerging market wave. Secondly, the recovery of businesses. These two factors will ensure that the stock market will grow quite well in 2024,” Mr. Son shared.

Mr. Tran Hoang Son - Director of Market Strategy at VPBank Securities Company, spoke at the seminar.

According to experts from VPBankS, this year will see 1-2 corrective waves before the market continues its upward trend. These corrections may cause investors to lose confidence in the market in the short term, therefore investors need to anticipate market resistance levels such as 1,326 points and 1,350 points. These are points where investors should avoid chasing prices.

When the market corrects to lower support levels such as 1,160 – 1,200 points, investors can then open new buy positions.

In the long term, Vietnam is currently in the process of being upgraded to emerging market status. Looking back at the Vietnamese stock market cycle, there have been periods of strong growth such as 2006-2007 and 2016-2017, with the VN-Index reaching high levels, potentially surpassing its historical peak in 2020, which may not happen this year but rather in 2025-2026.

Regarding the sectors that will lead and attract capital in the coming period, Mr. Son believes there are three groups of stocks that investors should pay attention to. Firstly, large-capitalization banks impact the index; in some trading sessions, the trading volume of this group accounts for nearly 30% of the total market liquidity.

The second sector is securities, which was favored by investors in 2023 and early 2024 due to its recovery and potential upgrade prospects.

Thirdly, the construction and building materials sector, including steel stocks, is attracting attention. Additionally, the infrastructure construction sector is also receiving attention as public investment is being boosted .

Source: https://www.nguoiduatin.vn/nhan-dien-3-nhom-nganh-dan-song-trong-thoi-gian-toi-a652603.html