The market is ready to enter a new growth cycle.
The stock market is in the accumulation phase and has been moving sideways around 1,200 - 1,300 points for a long time. The VN-Index is ready to approach the mid-term resistance zone of 1,300 points again, and this is also a special psychological milestone for investors as the market has tried many times but has not surpassed the peak.
According to ASEAN Securities, the cash flow is ready to join, creating a higher consensus.The market's upward movement has slowed down with the process of accumulating fluctuations alternating with the upward momentum, after reaching a good balance at 1,270 points.The index continues to fluctuate around 1,283 points and tends to retest the old peak of 1,300 points.
Although the increase is not too large in many industry groups, green has covered the market and demand has improved, showing that the risk of the trend has gradually decreased.
“Investors should focus on stocks with good fundamentals and have cash ready to disburse when these stocks reach attractive levels,” said an expert from ASEAN Securities.
Sharing the same view, BETA Securities also believes that, in general, the market is in a stable phase, but portfolio management still needs to be a top priority to minimize risks and protect profits.
Experts recommend that investors should remain cautious and carefully select stocks. They should focus on stocks with strong financial foundations and attracting cash flow, especially those with good growth potential in the upcoming Q3 2024 financial report period.
5 industries worth paying attention to
Analyzing the current sideways trend of the market, Mr. Vu Huu Dien, Chairman of VPBank Securities (VPBankS), commented that Vietnamese securities may be entering a new growth cycle.
“When stocks are moving sideways and less active, I think the market is accumulating and going up more strongly. However, that optimism is not unfounded but based on belief in the economic potential and sustainable development of the Vietnamese stock market,” Mr. Vu Huu Dien analyzed.
Mr. Dien believes that the market always goes through such development cycles, and those with patience and good risk management skills can still seize the opportunity to make profits. According to Mr. Dien, in the coming time, there are 5 industry groups worth paying attention to.
First is real estate, which has faced difficulties for many years and continues to face challenges today. With the synchronous solutions that have been and are being implemented to help restart projects, the real estate market is expected to start recovering next year.
Second, the consumer goods industry is expected to continue to grow steadily, but at a slower pace than before. The retail industry is taking advantage of its market size and applying supply chain management technology to consolidate the market, and there is still room to expand its market share in the future.
Third is the information technology (IT) sector, which focuses on companies that are ready for the AI revolution.
Fourth is banking, which is expected to follow the economic recovery closely. Although the bad debt ratio is currently high, it has peaked or is about to peak.
However, Mr. Dien said that in the future, when public investment disbursement increases and the real estate market recovers, the industry's output will increase.
