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

•        The VN-Index experienced significant fluctuations and ended July with a slight increase of 0.5% compared to June and a 10.8% increase compared to the end of 2023. The VN30 (+1.62% MoM) played a key supporting role for the VN-Index, while other market capitalization groups all saw declines. The Banking, Oil & Gas, and Healthcare sectors were the top performers, whereas the Telecommunications, Tourism, and Entertainment sectors faced profit-taking pressures in July 2024.

•       The average trading value per session in July decreased sharply by 26.52% MoM to its lowest level since February 2024, reaching only VND 19,368.40 billion/session. Individual investors continued to be the main drivers with net purchases, while foreign investors were net sellers. The number of securities accounts surged 3 times MoM and 2.2 times YoY in July, bringing the total number of accounts to 8.37 million (+14.8% YTD).

•       Foreign investors reduced the scale of their net selling. The net selling value in July decreased by 50.5% MoM, with a cumulative total of VND 60,904 billion for the first seven months of 2024. Capital flows from ETF funds continued to withdraw a net USD 94 million, with the focus still on DCVFM VNDiamond ETF and FUBON ETF.

•       The economy remained positive in July. The PMI for July reached a high of 54.7 points, the same as in June, due to a significant increase in new orders. The manufacturing and processing sector, FDI attraction, and exports continued to perform well, and the tourism services sector saw high growth. While the exchange rate cooled down, deposit interest rates continued to rise, particularly for maturities of less than 6 months.

•      The VN-Index trend in August is expected to accumulate within the price range of 1,180/1,200 points to 1,250/1,260 points, with no strong upward trend anticipated yet.

•       The recommended stock portfolio maintains a total of 15 stocks. In the context of a significant market correction at the end of the month, most stocks were affected. The best performers in the July portfolio were MBB (+9.9%) and DCM (+3.1%), while the worst performers were CTD (-7.3%) and BWE (-6.9%).