Is market valuation attractive?

Investment Comments

VNDirect Securities: Technically, the VN-Index has shown signs of forming a short-term bottom and recovering after falling to the lowest level of 1,218 points in the last trading week. Notably, selling pressure has weakened significantly, while buying pressure has shown signs of slight improvement in the last trading sessions of the week.

VNDirect expects the main index to build a foundation and accumulate again in the 1,230-1,260 point range. Market valuation has returned to a more attractive level, medium and long-term investors can start building their investment portfolios for the next 6-12 months, focusing on some sectors with improved business prospects such as banking, consumer - retail and import-export.

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

Dragon Viet Securities (VDSC): The fact that liquidity remains low shows that temporary supply has not put pressure on the market. Cash flow has not improved, although the market had a good increase at the end of the week.

Accordingly, the market is likely to continue to be supported and explore supply. It is expected that the resistance zone of 1,245 - 1,250 points will put supply pressure on the market in the coming time. Investors still need to be cautious with the unstable state of the market and keep the portfolio proportion at a safe level.

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

Saigon - Hanoi Securities (SHS): In the short term, VN-Index is tending to retest the price zone around 1,255 points, the highest price zone in 2023.

In the positive case, the index needs to surpass the resistance zone around 1,255 points to improve the short and medium-term trend.

The positive point is that the market is strongly differentiated, many stocks have good price increases, aiming to surpass the old peak when having positive business results in the second quarter of 2024, such as some stocks in the industrial park real estate group, gas distribution, plastics, oil and gas transportation, gasoline... Some technology stocks tend to recover to the old peak.

Regarding the medium-term trend, SHS has a less positive assessment when VN-Index cannot maintain the price trend line that has lasted from November 2023 to present, as well as the equilibrium price range of 1,245 - 1,255 points.

Stock news

Vietnam "attracted" more than 18 billion USD of FDI capital, up 10.9% over the same period. According to the latest report of the Foreign Investment Agency, Ministry of Planning and Investment, as of July 20, 2024, the total foreign investment capital (FDI) in Vietnam, including newly registered, adjusted and contributed capital to buy shares by foreign investors, reached more than 18 billion USD, up 10.9% over the same period in 2023.

Bac Ninh leads with a total registered investment capital of nearly 3.2 billion USD, accounting for nearly 17.8% of the country's total investment capital, more than 3 times higher than the same period. Next is Quang Ninh with more than 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.

Ho Chi Minh City ranked third with a total registered investment capital of nearly 1.55 billion USD, accounting for nearly 8.6% of the total investment capital in the country. Followed by Ba Ria - Vung Tau, Hanoi, Hai Phong.

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

The Import-Export Department (Ministry of Industry and Trade) stated that, according to the annual cycle, the trend of increasing imports of wood and wood products, especially wooden furniture groups in major markets, often increases sharply in the last 3 months of the year, when the housing market enters completion and there is a need to purchase and renovate interior equipment to welcome the new year.

With the market bottlenecks cleared, along with the current growth rate, the export prospect of wood and wood products is forecast to continue to maintain a double-digit growth rate.

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