Yuanta Vietnam Securities Company has just released its Q3/2018 strategy report.
Accordingly, it is forecasted that the market will enter a period of 5-5% increase in the last 6 months of 2018 with the following characteristics: The target can return to the peak of wave 3 (1,200 points); Liquidity will be lower than the period of the first 6 months of 2018; Investors should choose large-cap stocks that have both good and sudden core growth factors.
According to Yuanta, the macro risks that the market faces in the third quarter, including the Trade War between the US and China, are becoming more and more complicated.
The Fed will continue to raise interest rates twice more and will likely make capital flows continue to withdraw from the emerging market group.
With an average P/E in the region of 18.2x and Yuanta assessing this as a reasonable level for the Vietnamese stock market. Therefore, Yuanta forecasts the VN-Index to be at a reasonable level of 1,177 points.
Are stocks in the oil and gas industry and banking highly appreciated?
Yuanta believes that banks are a group of stocks worth noting in the second half of the year. The SBV sets a credit growth target of 17% in 2018.
The average net interest income growth of commercial banks is forecast to be over 20% this year.
In addition, the securities group is also highly appreciated by Yuanta. The liquidity level of the stock market in 2018 has made significant progress compared to 2017 thanks to increased market participation of foreign investors and the market welcomed more large-cap stocks listed.
In addition, stocks in the oil and gas, electricity and growth-up corporate stocks were also highly appreciated by Yuanta in the last months of the year.
