Stock Market Analysis for July 24: Prioritizing Stocks with Individual Growth Momentum

The domestic stock market demonstrated an impressive recovery on July 23, yet market analysts maintain a cautious stance, noting that technical signals have not fully confirmed a sustained upward trend. In this context, investors are advised to maintain moderate portfolio allocations, refrain from chasing price increases, and focus on sectors with distinct narratives to enhance investment opportunities.

Market Performance on July 23: Strong Recovery but Not Fully Conclusive

The trading session on July 23 witnessed a robust recovery of the VN-Index following a period of correction. Market liquidity improved significantly compared to previous sessions, indicating a gradual return of capital to the market.

As recorded, the VN-Index increased by over 20 points, approximately 1.8%, closing at the 1,150-point level. Trading volume reached more than 900 million shares, a roughly 30% increase from the previous session. Notably, the divergence among stock groups remained evident, with only about 60% of stocks gaining value, while the remaining stocks declined or remained unchanged.

Key Highlights of July 23 Trading Session

• The banking group led the gains with stocks such as VCB, TCB, MBB, and ACB increasing by 1-3%
• The real estate sector showed strong recovery, particularly in stocks like PDR, KDH, and VHM
• The securities group had a positive trading session, led by VCI, HCM, and SSI
• Liquidity improved across many sectors, indicating a return of market capital

Technical Signals and Forecast for July 24

Despite the strong recovery, market analysts maintain that technical signals have not fully confirmed a reversal of the downtrend. The VN-Index remains below key moving averages such as MA20 and MA50, suggesting that the downward trend still holds precedence.

According to Mr. Nguyen Van A, analyst at Securities Company XYZ: "The recovery on July 23 is a positive signal, but we need another 1-2 additional rising sessions to confirm a trend reversal. Investors should remain cautious and avoid rushing to increase their stock allocations."

Prioritized Stock Groups in Current Market Conditions

According to experts, in the absence of clear signals regarding a long-term uptrend, investors should focus on stocks with distinct narratives and internal growth drivers. Below are the recommended stock groups:

1. Banking Stocks

The banking sector continues to be a bright spot in the market with impressive first-half 2023 business results. Many banks have achieved and exceeded profit targets, particularly those with high Net Interest Margin (NIM) and good cost management.

• Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB): With its leading position and diverse ecosystem, VCB is expected to maintain stable profit growth.
• Tien Phong Joint Stock Commercial Bank (TPB): Offers attractive valuation and growth potential from retail banking and insurance segments.
• Military Bank (MB): Continues to benefit from network expansion and credit growth strategies.

2. Real Estate Stocks with Unique Narratives

The real estate sector showed strong recovery on July 23, particularly for companies with large land banks in prime locations and good project implementation progress.

• Phat Dat Real Estate Development Joint Stock Company (PDR): Possesses large land banks in Ho Chi Minh City and surrounding provinces, focusing on developing high-end projects.
• Nam Ha Noi Real Estate Business and Development Joint Stock Company (KDH): Has advantages in project locations and product delivery progress.
• Vinhomes Joint Stock Company (VHM): Continues to benefit from its leading position in the high-end real estate market.

3. Securities Stocks

The securities sector showed good recovery due to market improvements and the business performance of member companies.

• Vietnam Investment Securities Joint Stock Company (VCI): Has a strong analysis system and extensive customer network.
• Sai Gon - Ha Noi Securities Joint Stock Company (SHS): Focusing on developing fund management services.
• Ho Chi Minh City Securities Joint Stock Company (HCM): Has advantages in network and brand recognition.

Recommended Investment Strategy

Based on market analysis, experts provide several recommendations for investors:

1. Maintain moderate portfolio allocation: It is advisable to maintain stock allocations at 40-50% of the portfolio, with the remaining portion kept in cash or highly liquid products.
2. Avoid chasing gains: Investors should avoid purchasing stocks that have risen significantly on July 23 and instead wait for correction phases to enter positions.
3. Focus on fundamentally strong stocks: Prioritize stocks with strong first-half 2023 business results, clear growth prospects, and attractive valuations.
5. Diversify portfolio
: Capital should be allocated across different industry groups to minimize risk.
7. Risk management
: Use tools such as stop-loss orders to limit risks during market volatility.

Conclusion

The stock market demonstrated an impressive recovery on July 23, yet experts maintain a cautious view that the upward trend has not been fully confirmed. In this context, investors should prioritize stocks with individual growth momentum and clear fundamental narratives, while maintaining moderate portfolio allocations to remain flexible amid market fluctuations.

According to Ms. Le Thi B, analyst at Securities Company ABC: "We recommend that investors patiently wait for additional trend confirmation signals before deciding to increase stock allocations. In the short term, the market may continue to fluctuate within a narrow range before establishing a clearer direction."

#StockMarket #StockInvestment #PreferredStocks #StockGrowth