Investment Outlook 2024: Potential Stocks 'Make Waves'

In early January 2024, the VN-Index fluctuated positively, increasing from the 1,100-point zone to above the 1,160-point zone, with the recovery of banking and securities stocks... Cash flow from individual investors is returning in the context of low interest rates and other unattractive investment channels.

Cash flow chooses stock channel

In its January 2024 strategy report, SSI Securities Company said that the Vietnamese stock market increased by 12.2% in points in 2023. In 2024, GDP growth is expected to be better than the forecast of 6-6.5% with the recovery of trade, consumption and public investment. The Government's emphasis on the action plan focusing on growth in the context of guaranteed macro balances will be a positive factor throughout the stock market in the coming period.

In the 2024 strategy report, Dragon Capital Securities Company (VDSC) stated that in previous cycles of maintaining operating interest rates such as the period from March 2014 to September 2019, the rediscount interest rate was 4.25-4.5% and the Covid period when the rediscount interest rate was 2.5%, the stock market both gave good returns.

"In 2023, the Government has shown great determination in upgrading the stock market and this is a good signal to expect that the securities trading systems and mechanisms that meet the criteria for upgrading will be put into operation in 2024. Based on the sensitivity analysis between valuation, liquidity and profit growth, the expected fluctuation range is 1,080 - 1,380 points," VDSC forecasted.

Stock market 2024 has many positive signals

Another positive factor for the stock market in 2024 is that listed companies' profits are expected to improve from the low base of the previous year. A representative of VinaCapital Securities Investment Fund analyzed that this year, VinaCapital expects listed companies' profits to grow by about 19%, the highest in ASEAN.

Choose stocks with distinct advantages

The 2024 strategy report of MB Securities Company (MBS) also said that the Vietnamese stock market will record a lot of supportive information in the coming time when the KRX system comes into operation. This will create a foundation for many new products to be deployed, shortening the path to upgrading Vietnam to an emerging market. Reasonable market valuation is an opportunity to accumulate stocks with a long-term vision.

If Vietnam’s stock market is upgraded, VinaCapital estimates that the weighting of Vietnamese stocks will be between 0.7% and 1.2% in the MSCI and FTSE Russell emerging market indexes. Foreign capital could flow into the Vietnamese stock market by up to $5 billion to $8 billion.

In the market's upward trend, securities are considered to be the industry that benefits when idle money flows in stronger when other investment channels are not attractive.

"Securities firms' profits will increase rapidly, from 14% in 2023 to 38% in 2024, on expectations that lower interest rates will support more margin trading. Investment banking activities that were delayed last year due to the sluggish economy are likely to continue this year," VinaCapital experts forecast.

Anticipating this trend, a securities company with a technological advantage has just announced its initial public offering (IPO), attracting the attention of the market and investors.

Accordingly, DNSE Securities has just announced that it will conduct an initial public offering of 30 million shares to raise VND900 billion with the goal of becoming the first technology securities company to IPO and also the first securities company to IPO in the past 5 years. With the promising trend of the stock market and the potential of the technology finance-securities model in the world, after completing the listing, DNSE shares are considered an attractive opportunity for investors to seize at the initial stage.

DNSE is one of the first securities companies to IPO in the past 5 years.

Recently, the information that the foreign fund PYN Elite Fund invested in DNSE with a value equivalent to 12% of the equity capital was also announced. The participation of the "shark" from Finland as the second largest shareholder of DNSE is expected to help this fintech securities company have more resources and growth momentum after the IPO, adding a new factor to promote the prospects of the securities industry next year.

DNSE Securities is currently accepting registration and purchasing IPO shares 100% online from January 4 - January 24, 2024

The total number of shares auctioned by DNSE this time is 30 million shares, common stock type. The starting price is 30,000 VND/share. Each investor can register to buy a minimum of 1,000 shares, a maximum of 16,499,900 shares (not exceeding 5% after IPO), the volume step is 100 shares. Thus, the total expected capital mobilization value of the offering is at least 900 billion VND.

Notably, in terms of distribution, with its technological strengths, DNSE will be one of the first companies to allow investors to register and buy 100% of their shares online.

Details here: https://s.dnse.vn/ipo

Source: https://thanhnien.vn/trien-vong-dau-tu-2024-co-phieu-chung-khoan-tiem-nang-day-song-185240117220027879.htm