This comment was made by Ms. Do Hong Van – Head of FiinGroup analysis department, after analyzing valuation factors and cash flow in the seminar `Year of the Dragon of increasing profits` organized by DNSE on the afternoon of April 12.
After analyzing macro fulcrums and short-term adjustments, Ms. Van commented that real estate, electricity, and construction stocks can attract cash flow in the short term.
`The story of market support and macroeconomic support can be a catalyst to help this large group grow,` Ms. Nguyen Ngoc Linh – Director of DNSE trading added information.
Experts in the discussion `Year of the Dragon with strong profits`.
In the long term, the banking industry will still be an area of interest to investors.
After the increase at the beginning of the year, the cash flow pouring into this group of stocks showed signs of withdrawing, but in the long term, banking stocks can still be the focus.
In addition to stories related to foreign cash flow or dividend payment plans, improvements in asset quality as credit increases again and signs of macroeconomic recovery become more solid will help increase cash flow.
Adding additional information, the Head of Analysis Department cited evidence about the market valuation level.
Specifically, with a contribution of about 40% of profits, the banking industry is trading with a P/E below the five-year average.
Besides promising industry groups, experts at the discussion also shared stories about exchange rates and net selling force of foreign investors.
Ms. Van pointed out that the selling force of foreign investors has been quite intense recently, mainly active cash flow.
Sharing the same opinion, Ms. Nguyen Ngoc Linh said that the net selling force comes from active cash flow, creating pressure on the general market. The demand force that helps VN-Index increase mainly comes from individual investors.
Experts point out the reason for net selling by foreign investors is based on the general trend of money flowing into developed markets such as the US and China, while weakening in Asia.
`Exchange rate fluctuations, or an unattractive stock basket – lack of technology, semiconductor, and green growth stocks are also reasons why foreign investors sell goods,` experts shared.
According to experts at the seminar organized by DNSE, the adjustment in the second half of March and early April is only short-term and cumulative.