Stock market offers promising opportunities as it enters bullish cycle

Nguyen Tuan Anh, chairman of FinPeace Group JSC

This year witnessed significant fluctuations in the stock market. After reaching a peak of 1,255 points, it experienced a sharp decline, bringing the index back to the 1,020-point range in less than two months. These intense fluctuations left many investors riding the waves, with some losing their gains in a short period.

Despite the challenges, the FinPeace investor community remained resilient and stable. Guided by advice, it navigated through market corrections and maintained impressive profit levels. Its fundamental portfolio performance in 2023 recorded a growth rate of 46 per cent.

Nguyen Tuan Anh, chairman of FinPeace Group JSC said, "The strong performance of the investment portfolio is the result of a clear and disciplined trading approach. Core values such as wise decisions, self-awareness, and step-by-step actions serve as the three pillars that helped us navigate the storm."

"Throughout a challenging year, the group played a pivotal role as a trusted companion, assisting the investor community not only in preserving capital but also in achieving significant profit growth," he added.

Entering 2024, FinPeace – an organisation providing personal financial training and investment consulting services – assesses that the Vietnamese stock market is set to yield promising opportunities as it enters a bullish cycle.

"We believe that having a strategy without a plan is prone to failure. Investors cannot optimise short-term trades without a long-term direction. After the downward and sideways trends in the stock market in 2022-2023, we anticipate opportunities for growth in 2024, especially in the late stages of the year. This marks the beginning of a significant cycle," stated Tuan Anh.

He believes that, in 2024, intriguing stories will continue to unfold, with a focus on market upgrades and individual investors regaining confidence. These factors are fundamental in bringing the market back to an upward primary trend.

Tuan Anh asserted, "In 2024, there will be stock groups following the early trends. This is a golden opportunity for investors to identify the right industries, back trends from the beginning, execute reasonable disbursement strategies, discipline themselves to remain patient, and enjoy significant returns."

FinPeace's perspective on 2024 envisions two distinct positive phases in the market. The first will kick off from mid- to late-April, following the announcement of the Q1/2024 business results. The second will take place towards the end of the year, when investor confidence in the market returns. Key stocks in the deep undervaluation range of 1,200-1,250 will be crucial for the VNIndex's resurgence.

During the conference, FinPeace also presented analyses on broader topics such as the growth drivers of both the Vietnamese and the global economies, business market prospects, and potential industry groups. It highlighted three groups expected to show the best fundamental growth in 2024, namely steel, electricity, and oil and gas.

The conference also addressed the question of why the banking sector might face challenges in breaking through.

In addition to contributions from FinPeace experts, the conference featured others from securities companies and reputable investment funds. They shared insights and addressed investor queries regarding macroeconomics, sectors, and long-term investments.

Tran Duc Anh, Macro and Market Strategy director at KB Securities said, "The expectations of policy shifts by major central banks worldwide, such as those in the US and the EU, will be the main driving force supporting the global macroeconomic situation in 2024. This will come amidst global inflationary pressures and their existing risks. In a positive scenario, we can expect 2024 to be the rebound year for the economy, returning to a high and sustainable growth cycle thanks to supportive fiscal policies and favourable external conditions."

Ho Sy Hoa, Research and Investment Advisory director at DNSE Securities explained, "Pressure to reduce lending interest rates, difficulties in supplying credit to the market, and record-breaking corporate bond maturities in 2024 are noteworthy obstacles to watch in the coming year. However, the recovery of the global and domestic economies will be a strong catalyst for the Vietnamese stock market."

The Investment Outlook conference will be held annually in December, providing not only support but also an opportunity to connect within a knowledgeable investor community.

FinPeace remains cautious, confident, and steadfast on its journey to become a trusted companion to all involved.

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