Promising industry groups in the stock market in 2024?

DNVN - Based on criteria of profit growth, reasonable valuation, attractiveness of cash flow and supporting macro stories, banking, real estate and retail are forecasted to be 3 promising industry groups on the stock market in 2024.

According to Mr. Nguyen Minh Hoang - Director of Analysis of Nhat Viet Securities Joint Stock Company (VFS), despite the difficult economic context, there were 206 stocks that exceeded the peak compared to 2022 in terms of capitalization. The fluctuations of stock prices at the Ho Chi Minh City Stock Exchange (VN-Index) also created a solid bottom since the end of 2022.

Based on the positive macro foundation, the Vietnamese stock market in 2024 is expected to have positive developments. The market has entered a new growth phase through the release of a series of statistics on market developments and stock fluctuations in industry groups in 2023.

“The stock market will increase strongly in 2024 following the economic recovery, with the main driving force coming from the low interest rate environment. The low interest rate will be maintained and have a clear impact on the economy and business results of enterprises,” said Mr. Hoang.

The stock market will increase strongly in 2024 as the economy recovers.

The Director of Analysis at Nhat Viet Securities Joint Stock Company (VFS) presented two scenarios for the stock market in 2024. Accordingly, with a neutral scenario, the VN-Index could reach the range of 1,317 - 1,366 points. With a positive scenario, the VN-Index would reach the range of 1,391 - 1,441 points.

Based on the criteria of profit growth, reasonable valuation, attractiveness of cash flow and supporting macro stories, Mr. Hoang assessed that banking, real estate and retail will be the 3 promising industry groups for 2024 in the stock market.

Discussing solutions to promote the development of the stock market, according to Mr. Hoang, the authorities need to continue implementing the financial strategy and developing the stock market until 2030. Soon issue institutions suitable to the context with new market requirements. Specifically, Decree 65/2022/ND-CP (amended) on the offering and trading of individual corporate bonds; Securities Law 2019 (amended) and Enterprise Law 2019 (amended).

Along with that, it is necessary to promote enterprise equitization; drastically implement solutions to upgrade the stock market. At the same time, invest in information technology infrastructure, build and implement a digital transformation strategy for the securities industry until 2030.

Ha Anh

Source