On the last session of the week of August 9, VN-Index increased by more than 15 points (+1.32%), to 1,223.6 points, but compared to the previous weekend, this index still decreased by more than 1%. Similarly, HNX-Index decreased by 0.9%, to 229.4 points and Upcom-Index decreased by 1%, to 92.8 points.

Liquidity increased this week but remained low with transaction value just over VND17,000 billion/session. Foreign investors still net sold nearly VND4,000 billion on all three exchanges.

Mr. Barry Weisblatt David, Director of Analysis - VNDIRECT Securities Company, commented that in the coming time, the US Federal Reserve (FED) is expected to cut interest rates twice, which could push the USD index (DXY) below 100 points. This will help the State Bank be more flexible in pumping liquidity into the market, increasing credit growth for the whole year by about 14%.

"A positive scenario for the VN-Index to close above 1,400 points in 2024, corresponding to a P/E ratio of 14.8, is feasible," said Mr. Barry.

In this context, many sectors will bring good investment opportunities in the remaining time of 2024, especially banking and steel. For banks, VNDIRECT experts believe that although asset quality has declined, it will recover when the economy improves. Banks are currently trading at an attractive P/B (stock price/book value) of 1.7 times, lower than the 5-year average.

In the August 2024 Strategy Report, Mirae Asset Securities Company stated that trading activities in the first sessions of August reflected investors' risk aversion, especially domestic individual investors. The risk of a decline still exists as the general downward pressure on major stock markets could negatively impact the VN-Index.

"In a less optimistic scenario, the market will find demand at attractive valuation zones of the VN-Index - the average P/E valuation zone of the last 10 years is about 1,050 - 1,150 points. Expectations of this support zone are based on the assessment of Vietnam's macroeconomic improvement in the past 7 months and the trend of corporate profits recovering in the first half of this year" - Mirae Asset experts commented.

Meanwhile, according to experts from the Analysis Center - ACBS Securities Company, the fact that VN-Index maintains the support zone of 1,150 - 1,160 points is considered a challenge for the market in maintaining the medium- and long-term price increase channel. If not taking into account the possibility of a recession in the US economy, the suitable scenario from now until the end of the year for VN-Index is to continue to fluctuate within the range of 1,150 - 1,300 points with the domestic macroeconomic situation stable, positive growth and the general valuation becoming relatively attractive.

The August 2024 strategic report of Rong Viet Securities Company forecasts that the reasonable P/E valuation range in the third quarter can be expected to be 14 - 15 times, corresponding to the VN-Index trading balance point range of 1,237 - 1,325. From now until the end of the year, based on the prospect of 14 - 18% profit growth of listed enterprises, the reasonable market range is forecasted to be 1,236 - 1,420 points.

"Investment opportunities selected in the second half of the year are businesses that maintain the recovery trend and profit growth in the consumer goods, steel, banking, industrial parks, and seafood industries. In addition, textiles and garments are also an industry group that investors may be interested in again if there is a strong discount in stock prices during market corrections when the profit trend of this industry is positive" - ​​Rong Viet experts analyzed.