Dear valued customers, please find attached the Strategic Report for July 2024

•       The VN-Index increased by 10.21% compared to the end of 2023. The VN-Index faced strong correction pressure around the 1,300, ending June 2024 at 1,245.32, a decrease of 1.30% MoM and 3.02% compared to Q1/2024. In June, VNMID (-2.75% MoM) and VNSML (-2.19% MoM) saw declines after performing well in May, while the large-cap group VN30 increased slightly by 0.18% after a 2.86% rise in May. The Telecommunications and Information Technology stock groups showed the most positive developments in June and also attracted the most capital inflows into the market.

•       Trading value increased by 5.20% MoM in June, marking the second consecutive month of growth, above the average level. For the first six months of the year, the average trading value across the three exchanges reached VND 24,599 billion per session, a significant 79.2% increase compared to the same period in 2023, with the most substantial growth observed at the HOSE (+83% YoY). Individual investors continued to be the primary driving force by being net buyers, while foreign investors were net sellers. The number of securities trading accounts increased to 752,464 in the first half of 2024, up 81.7% YoY.

•       Foreign investors set record net selling. The total net selling value in the first six months of 2024 by foreign investors amounted to VND 52,621 billion, which is 2.3 times higher than the net selling value for the entire year of 2023, especially surging in May and June. Vietnam witnessed ETFs experiencing the strongest net selling among Southeast Asian countries, ranking second after Thailand in terms of the value of stocks sold off.

•     The economy grew by 6.93% in Q2 and 6.42% in the first half of the year. Manufacturing, especially processing and manufacturing industries, saw strong recovery due to increased order volumes, FDI inflows, and sustained export performance. The tourism sector also showed high growth. However, inflation increased, and exchange rate pressures remained high. We assess that Vietnam could achieve or exceed the growth target of 6.5% for the year 2024.

•     The VN-Index in July is forecasted to continue consolidating within a narrow price range, from 1,200 points / 1,230 points to 1,280 points / 1,300 points. There is still no strong indication of a significant upward trend forming.

• The stock portfolio recommendation for July removes VSC and includes MBB, maintaining a total of 15 stocks. The top-performing stocks in the portfolio for June were FPT (+12.3%) and BWE (+6.3%), while the least favorable performers were PVD (-9%) and SZC (-8.8%). From the beginning of this year, the portfolio consists of 11 stocks that have outperformed the VN-Index, while 4 stocks have underperformed.