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 three promising industry groups on the stock market in 2024.
According to Mr. Nguyen Minh Hoang - Director of Analysis at Nhat Viet Securities Joint Stock Company (VFS), despite the difficult economic context, 206 stocks have surpassed their peak compared to 2022 in terms of capitalization. The fluctuations of stock prices at the Ho Chi Minh City Stock Exchange (VN-Index) have 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 maintained low interest rates will permeate 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 1,317 - 1,366 point range. With a positive scenario, the VN-Index would reach the 1,391 - 1,441 point range.
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 three 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
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