Stock market shows potential for growth

Amidst a landscape of economic uncertainties, banking, retail, and real estate sectors are identified as beacons of growth, bolstered by strategic government interventions.

In the first quarter of 2024, Vietnam's stock market demonstrated remarkable resilience, buoyed by anticipations of economic recovery and the subsequent impact on profit across various sectors.

Nguyen Thi My Lien, head of Research of Phu Hung Securities, said, "While this optimism was initially widespread, as investors looked forward to a robust growth trajectory for corporate earnings, recent statistics from the General Statistics Office paint a more tempered picture, with lingering challenges such as fluctuating exchange rates, creeping inflation, and emerging cybersecurity threats."

"While the first-quarter performance has been strong, the underlying economic recovery is progressing more slowly than expected, introducing a degree of caution into our stock selection," Lien added.

Despite these concerns, Lien remains optimistic about the potential for growth, driven by a combination of economic recovery, supportive government policies, and the low earnings base from last year.

Specifically, banking, retail, exports, and real estate are sectors identified by Phu Hung Securities as having favourable prospects. In banking, a continued low-interest-rate environment is expected to stimulate credit activities, with the sector's profits projected to rebound by 12-15 per cent this year following a 5 per cent decline in 2023. ACB and MBBank have emerged as top picks in this category.

The retail sector is also poised for a significant turnaround, benefiting from restructuring efforts and early signs of recovery. Mobile World Group, FPT Retail, and PNJ are among the stocks anticipated to lead this growth.

The export sector, favoured for its potential amid cooling global interest rates, is expected to see enhanced demand in key markets like the US, EU, and China.

Textile and seafood stocks such as Century Synthetic Fiber Corporation, Song Hong Garment JSC, Thanh Cong Textile Garment Investment Trading JSC, Sao Ta Foods JSC, Nam Viet Corporation, and Vinh Hoan Corporation, along with rubber industry stocks like DakLak Rubber Investment JSC and Dong Phu Rubber JSC, are highlighted as attractive investment options.

"Real estate is another sector where we see promise, particularly in light of government initiatives to rejuvenate the market following two challenging years," Lien added.

"The government's determination to resolve legal issues has reinvigorated the real estate sector, with companies actively raising capital and resuming sales," she explained.

Preferred stocks in this sector include Vinhomes, Khang Dien, and Nam Long, chosen for their financial stability and clear legal standing.

Hai Van

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