Weighing ticker appeal for remainder of 2022

According to Hanoi-based VNDIRECT Securities JSC, the following five sectors deserve investors’ attention in the second half of this year.

As Vietnam reopened the tourism industry in mid-March, the demand for food, accommodation, travel, and entertainment has rebounded.

The stock firm views businesses operating in aviation, food and accommodation provision, and travel and entertainment services like ACV or AST with upbeat prospects.

High export growth pins investors’ expectations on export-oriented sectors

Second is the group of businesses beneficial amid a higher interest rate environment, including banks, insurance firms and those keeping huge available cash volumes like FPT, GAS, MBB, VPB, and TCB, among others.

The third is the group of milk and food makers like VNM or MCH which can expect high growth prospects when the price of their relevant input materials such as full-cream milk powder, corn, and sugar is expected to be abated.

Fourth is the group of firms beneficial from accelerated public investment pace amid the government’s recent efforts and decreasing building material prices, such as HPG, PLC, and C4G.

Fifth is the group of firms that benefit from more developed energy infrastructure.

Vietnam’s energy sector is undergoing strong transformation leveraging the government’s priorities to maintain a balance between economic development and environmental sustainability.

With the scale and quicker-than-expected pace of this energy transition, power and energy infrastructure development businesses like POW, GAS, and PVS would witness eminent growth prospects in the upcoming years.

Nguyen Trong Dinh Tam, Investment Strategy senior expert at SSI Research, noted that the money flow tends to head finance tickers, including those of banks and securities firms, particularly when these ticker groups experience a plunge in ticker price in the past months.

For bank tickers, the expectation is put on the possibility banks would have their credit limit loosened in the third quarter this year, whereas for stock tickers the T+2 possibility from late this month is expected to significantly improve market liquidity.

In addition, tickers of export firms have also garnered a great deal of investors’ attention.

Ministry of Industry and Trade showed that in the first half of this year, Vietnam raked in nearly $186 billion in total export value, showing a 17.3 per cent jump on-year, in which the textile apparel sector saw a 23 per cent jump in its export value reaching $22 billion, and the group of agro-forestry-fisheries products eyed around 14 per cent hike amounting to $27.8 billion.

According to BIDV Securities’ recent forecast, the demand for import of Vietnam’s basa fish would be soaring for the rest of this year, particularly from the US market due to dwindling catfish farming areas in this country.

With basa consumption similar to that of the US market, China’s market is expected to soon reopen doors for Vietnamese basa fish, a key factor in its export growth in the second half of this year.

“Resuming total aggregate demand provides a good backing for firms’ recovery and underpins export growth, laying the fundament for the country to reach 6.5 per cent development target in 2022,” said senior expert Vu Dinh Anh, citing that high export growth pins investors’ expectations on export-oriented sectors.

Weighing real estate ticker growth potential As real estate tickers have been more appealing these days, investors are keen on which are the best bet in the forthcoming months.

Opportunities from tickers with high dividend yield The stock market is in the doldrums due to the implications of the COVID-19 pandemic. The sharp decline in prices, however, is ushering in good opportunities for investors to grab tickers with attractive dividends.

Power sector tickers prove alluring Many power firms have reported rosy business performance amid the power sector’s growing liberalisation which has fuelled market competition and bolstered the efficiency of production and business.

Thai Quang Trung, investment deputy director at VinaCapital, assumed that foreign direct investment and export growth are deemed two of the key factors behind investors’ profit.

Vietnam’s economy is increasingly open, with exports of goods and services as a percentage of GDP surpassing 100 per cent and reaching double-digit growth over a long period of time.

Trung, however, raised a warning that the US and EU are showing signs of economic recession, whereas they are Vietnam’s two major export markets. In addition, China’s continued zero-COVID stance could adversely affect global trade.