Within the final four months of the yr, what trade ought to inventory traders ‘put their cash’ in to have a heat and joyful Tet?

Within the inventory market, the indices repeatedly set new highs, making Vietnam’s inventory market the second strongest market on the earth.The above info was given by Mr. Pham Hong Son, Vice Chairman of the State Securities Fee on the Convention on Steering and Administration for the primary 6 months of the yr and implementing duties for the final 6 months of 2021 on July 9.

The market repeatedly peaked, resulting in many new traders getting into the market. After a interval of pleasure and steady development, in July, the market skilled a downward correction of about 17% after which recovered once more. Within the context of the sophisticated improvement of the Covid-19 epidemic, which trade to put money into is a query many individuals ask.

In a clip shared on the Youtube channel of Finance & Enterprise not too long ago, monetary skilled Phan Le Thanh Lengthy shared his evaluation of industries value investing in within the final four months of 2021. Mr. 20 years of expertise at massive funding funds, auditing and consulting corporations, at the moment the founding chairman of the Vietnam Neighborhood of Monetary Advisors (VWA).

In accordance with this skilled, there are professions which are vastly affected by this epidemic. His opinion and the group of AFA Analysis & Training are that there are professions that will probably be vastly affected by this Covid-19 epidemic.

Affected industries

This skilled assesses that the retail trade within the brief time period will probably be affected first, aside from companies that retail important items similar to supermarkets or foodstuffs. In actual fact, it may be seen that retail companies that don’t belong to the class of non-essential items have now closed shops similar to gold, silver, gems, cellphones, electronics. With the present stage of developments, the affect of this closure could possibly be extended. Together with the present context of the Covid-19 epidemic in Ho Chi Minh Metropolis, Mr. Lengthy stated that it’s troublesome to have an early easing within the close to future.

And maybe from now till the tip of 2021, the story of the retail trade of non-essential objects could have a right away short-term affect. Many funding funds assume that retail will get well strongly after the pandemic, however contemplating the extent of the affect from now till the tip of 2021, I believe that’s the trade that will probably be affected first.“, stated Mr. Phan Le Thanh Lengthy.

In the last 4 months of the year, which industry should stock players put their money in to have a warm and happy Tet?  - Photo 1.

Monetary skilled Phan Le Thanh Lengthy.

The second trade, this skilled believes that the excessive stage of affect is the trade associated to the provision chain, manufacturing enterprises.. Opposite to the optimistic evaluation of some securities firms, Mr. Lengthy stated that export-related industries should not essentially good for the final four months of the yr. The reason being that this trade is at the moment dealing with the largest problem is the interruption of the provision chain.

For instance, some companies in four provinces affected by the epidemic together with: Ho Chi Minh Metropolis, Dong Nai, Binh Duong, Lengthy An that Mr. Lengthy have the chance to cooperate with, probably the most troublesome drawback of those companies shouldn’t be is the “three in place” regulation. Though the manufacturing of three on-site causes enterprises to bear nice prices and troublesome to handle the workforce, probably the most troublesome factor is the interruption of enter supplies.

With the interruption of enter supplies, companies similar to textiles, though they’ve tried very exhausting, are actually struggling. One other instance is a few companies associated to electronics, iron, metal, copper development, all inputs cease. This skilled stated that inside the subsequent few months, it won’t be potential to reopen shortly. So even in export-related industries, the provision chain is interrupted, and the shortage of provide will probably be an enormous drawback.

One other trade that consultants from AFA assume may additionally be affected by Covid-19 is the banking trade. The story of the banking trade is that it should watch for the insurance policies of the State Financial institution. Within the first 6 months of the yr, the enterprise outcomes of the banking trade had been comparatively good, however ranging from August, September will probably be much less optimistic due to the delay when mirrored within the monetary statements. Particularly, the monetary report of the third quarter will mirror the unhealthy debt state of affairs in addition to the troublesome issues of the financial system.

As well as, the worth enhance of the banking trade within the first 7 months of the yr may be very massive, so Mr. Lengthy believes that the trade won’t be too vibrant within the year-end interval except there are adjustments in insurance policies similar to amending Round 03 of the Financial institution. authorities or insurance policies associated to rates of interest or reserve necessities.

Industries that aren’t affected

These are industries that aren’t disrupted by provide chains or affected by Covid-19. The primary trade this skilled evaluates is securities. In accordance with Mr. Lengthy, with the inventory market nonetheless pretty much as good as it’s now and with low rates of interest, the market will nonetheless preserve a excessive stage of liquidity and develop steadily from now till mid-2022.

Securities is a particular trade associated to banking and finance. The traits of the property of the enterprise will decide whether or not the revenue of that firm is nice or not. This skilled assesses that the corporate with the higher property will win.

His recommendation is to prioritize firms with low P/B ratios. These are firms with alternatives. At the moment available on the market, there are shares which have grown in value too excessive in comparison with the corporate’s potential to generate income from property. Due to this fact, Mr. Lengthy prioritizes firms whose inventory costs haven’t elevated too strongly and have good P/B ratios.

In the last 4 months of the year, which industry should stock players put their money in to have a warm and happy Tet?  - Photo 2.

Some securities trade shares.

The second trade that’s least affected however is benefiting from the pandemic is the transport trade. This skilled pays particular consideration to the vital transport index on the earth, BDI (Baltic Dry Index).

Earlier than the world financial disaster, on April 1, 2008, this index reached 11,482 which is an all-time excessive. Presently, a collection of shares in transport elevated strongly. One such instance is the inventory ticker VSP. This can be a inventory with a horrible development wave in 2008. A short while later, as a result of affect of the worldwide financial disaster, the BDI index dropped sharply, solely 721 factors was the underside in November/ 2008.

In the last 4 months of the year, which industry should stock players put their money in to have a warm and happy Tet?  - Photo 3.

In the meanwhile, the BDI index has elevated strongly because the starting of the yr. By the point of August 12 that Mr. Lengthy analyzed, this index was 3410, the very best stage because the starting of the yr in addition to inside 5 years. On August 20, 2021, this index jumped to 3976. With the BDI growing strongly, this skilled thinks that firms within the transport trade will probably be attention-grabbing shares. Nonetheless, we should always observe that there will probably be codes which have had a giant enhance in value. One signal that this individual shared is that the shares have info that administration has posted to promote rather a lot.

In the last 4 months of the year, which industry should stock players put their money in to have a warm and happy Tet?  - Photo 4.

The third trade chosen by skilled Phan Le Thanh Lengthy is the knowledge know-how trade. This trade is least affected by Covid-19 for the time being, even many companies nonetheless want digital transformation methods. For instance, within the current interval, FPT’s inventory value elevated by greater than 10% regardless of the market’s correction interval. However Mr. Lengthy additionally emphasised {that a} good trade is the very first thing to concentrate to, however traders should understand how to decide on shares in that trade.

In the last 4 months of the year, which industry should stock players put their money in to have a warm and happy Tet?  - Photo 5.

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