Fri. Jul 12th, 2024

Dragon Capital: Stock investment is still attractive

The above comment was stated by Mr. Le Anh Tuan – Director of Investment Division of Dragon Capital at the investor conference on the afternoon of April 16.

The stock market is going through a strong correction, falling to nearly 1,200 points – the lowest level in nearly two years.

Mr. Le Anh Tuan agreed with the view that in order to find a balance point with the exchange rate, domestic deposit interest rates may increase by 50-150 percentage points in the next 3-6 months.

`Monetary policy continues to loosen, interest rates remain low to support stocks,` Mr. Tuan said.

With favorable macroeconomic conditions, plus the US Federal Reserve (Fed) expected to reduce interest rates, Dragon Capital experts believe that stocks will have a good growth rate.

Therefore, according to Dragon Capital Investment Director, stock investment performance is still very attractive if investors know how to regulate the proportion of cash flow.

Investors trade at Yuanta Securities Company (District 1, Ho Chi Minh City).

Normally, loose monetary policy is one of the driving forces to support the stock market, in addition to macroeconomic prospects and corporate profit growth.

At the same time, Vietnam’s economy has had many changes, the most noticeable being export growth.

Not only Dragon Capital, other units maintain an optimistic view on this year’s market prospects.

Accordingly, stock market valuation will become attractive with the P/E ratio (market price to earnings per share) at only 11.7 times, attracting cash flow.

`We believe that the strategy of building a diverse portfolio will continue to create attractive profits for investors,` said a VCBF representative.

VN-Index from the beginning of 2024 increased by more than 13%.

Exchange rates have recently increased rapidly, continuously setting new records.

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Around the world, the USD index (DXY) returned to 106 points for the first time in 6 months.

In addition, the increase in exchange rates is also influenced by the gold and cryptocurrency markets.

Dragon Capital points out the strong correlation between exchange rates and cryptocurrency increases.

Dragon Capital: Stock investment is still attractive

Correlation between USD exchange rate and Bitcoin market price from the beginning of the year until now.

Despite strong fluctuations, Dragon Capital’s statistics still show that VND is losing value more slowly than many currencies in the region.

`The reason the market reacted is because it is not used to the current level of fluctuations of up to 4%,` said Mr. Le Anh Tuan.

To stabilize, the State Bank started issuing bills again, with a total value of about 172,000 billion VND, as of April 13.

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