Statistics show that the group of mid-cap stocks (VNMID) has had the best price increase since the beginning of the year, equivalent to 19.4%. Meanwhile, the VN30 basket stocks have increased at the same rate as the VN-Index at 9.9% and the group of small-cap stocks has increased only 4.2%.

Despite the increase compared to the beginning of the year as above, experts from ACBS Securities Company believe that the P/E valuation of VN30 is still much lower than the median for the period 2020 - 2024 (13.4). Meanwhile, both VNMID and VNSML are far ahead of the median P/E for the period 2023 - 2024 (the median of VNMID is 13.3 and VNSML is 12.2).

Therefore, ACBS believes that with the prospect of profits unlikely to break out in the next 1-2 quarters, a broad adjustment for mid- and small-cap stocks is appropriate. Opportunities in the second half of this year will be tilted towards the VN30 group (in which banking stocks account for a large proportion), especially in the context of the FED lowering interest rates and cash flow from foreign investors may re-enter the market.

Sharing the same view, An Binh Securities Company (ABS) commented that large-cap stocks in VN30 are currently valued at P/E of 12.58x, much lower than small- and medium-cap stocks in VNMID (16.73x) and VNSML (17.38x).

Regarding the detailed outlook for industry groups, ACBS increased its expectations for the retail and consumer sectors due to the recovery momentum forecast to be stronger in the second half of the year. On the contrary, ACBS lowered the short-term outlook for the securities sector from positive to neutral due to the business results in the second quarter of 2024 showing negative growth compared to the same period last year. The recovery momentum from the bottom has slowed down, while the average valuation of the sector is peaking.

Similarly, the oil and gas sector is also less attractive due to the prospect of flat oil prices and the slow progress of the Block B O Mon project. However, some oil and gas enterprises such as the Vietnam National Petroleum Group (PLX) or Binh Son Refining and Petrochemical (BSR) can recover good profits in the second half of the year thanks to increased output and gross margin. The seafood export sector also has a neutral outlook due to increased output but still falling prices, leading to disproportionate revenue growth. Increased selling and administrative expenses erode profits.

Regarding buying points, experts from VNDIRECT Securities Company assessed that if the VN-Index retests the support zone of 1,200 points, it will be a good opportunity for long-term investors to consider increasing the proportion of stocks and building an investment portfolio for the next 6-12 months. Prioritize industry groups with improved business prospects such as banking and import-export (textiles, seafood, iron and steel). However, investors should note to maintain a reasonable proportion of the portfolio (60-70% of stocks) and not use leverage to manage risks when the market is still at risk of strong fluctuations in the short term.