Positive Developments in the Stock Market
The stock market is thriving, pleasing investors even in the days leading up to the Lunar New Year and the early days of the new Year of the Dragon 2024. The VN-Index has successfully surpassed the 1,200-point mark, bolstered by the rise of bank, utility, steel, technology, and real estate stocks, and the upward trend continues unabated.
Economic Optimism for 2024
The year 2024 holds significant promise for innovation and growth, particularly in manufacturing, exports, FDI into Vietnam, public investment disbursement, and stock market upgrades. Enhancing infrastructure projects and national projects is also a key criterion for economic growth. The economic environment is improving, driven by better dynamics compared to last year, forecasting a flourishing stock market potentially reaching 1,300-1,400 points or even higher during the year.
One of the positive early-year developments is the government's directive to expedite market upgrade reporting. While the intention and will are clear, whether the upgrade occurs as planned remains to be seen. The VN-Index reaching 1,500-1,800 points or higher may only be a matter of time.
Sector Performance and Investment Opportunities
Before the Tet holiday, the Banking and Financial sectors showed unexpectedly strong performance, while Chemical, Real Estate, Steel, and Natural Rubber stocks experienced expected gains. This year, fundamental sectors and familiar fields are expected to attract investor attention more frequently, with certain standout stocks likely to see stronger price increases compared to others in the sector. Examples include ACB, CTG, MBB in Banking; DRC in Rubber Tires; GVR (Natural Rubber); CSV (Chemicals), and potentially Technology-Telecommunications, Financial, Oil & Gas, Industrial Real Estate, and Pharmaceuticals seeing rapid price increases.
Stock Selection Criteria for 2024
In 2024, investors should focus on leading stocks or companies with competitive advantages in their sectors, such as DRC, CSV, ACB, GVR. Additionally, the advantage of land reserves, undervalued or unrecognized assets, or prime land holdings in subsidiaries and affiliated companies are crucial. Investors should also consider the attractive valuation of their target stocks. If stock prices are too high, have already increased significantly, or if a company’s good business performance lacks strong growth potential, it may no longer be an opportunity, and investors are advised to select other stocks.
The new year presents a more attractive investment environment with more opportunities and better-performing individual stocks. Effectively leveraging these opportunities with a focused investment strategy will help investors achieve high returns in 2024, which still promises many challenges.
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(*) Disclaimer: This report is intended to provide information for investors' reference only. The views, forecasts, and estimates in this report reflect the author's opinions at the time of publication and are subject to change without notice. Investors should independently assess the information in this report.
