In April, the market faced headwinds that impacted the overall trading sentiment. A notable factor was the Federal Reserve's policy to maintain high interest rates for an extended period as inflation data continued to exceed expectations. Additionally, geopolitical tensions in the Middle East escalated with Iran's involvement and Israel's subsequent retaliation. Finally, central personnel changes prompted the market to adopt a defensive stance. These elements overshadowed the market's impressive business growth in the first quarter of 2024 compared to the same period last year, which saw an 11% YoY increase.

As we move into the new month, with the earnings reporting season and annual shareholder meetings winding down, we do not anticipate significant information-driven momentum from businesses. However, the market correction in April, combined with positive first-quarter business results and the outlook for the remaining quarters, make the market's valuation appealing. We believe that this will be a key factor in the market's recovery following the psychologically driven volatility experienced in April. Moreover, rapid changes in expectations for central bank rate cuts, particularly by the Fed, have raised investor concerns as recent inflation expectations do not support an early rate cut. A higher-than-expected actual inflation figure could hinder the prospects for rate cuts and market recovery next month. However, according to our findings, the general global inflation measure is expected to return to target levels for the remainder of the year due to the "catch-up inflation" effect of components that are lagging will start to reflect price fluctuations due to recent supply and demand shocks.

Regarding the market index, we expect the VN Index to trade within a range of 1,165 to 1,280 in May. Under the base scenario, positive business results may help market sentiment push the index to the peak zone for 2024. If macroeconomic data continues to disappoint the rate cut scenario or if unexpected headwinds arise, it could also trigger a market correction

In this market dynamic, we believe opportunities for portfolio restructuring and reducing the cost of investment portfolios continually emerge at both the market's highs and lows. Market downturns in May could present potential buying opportunities for both long-term investors and those who favor active trading. Our preferred stocks includes:

·         Banking: ACB, CTG, and MBB

·         Steel, Consumer goods, Consumer services: HSG, HPG, MWG, HAX, SCS and MSN

·         Real Estate: KDH, NLG, LHG, PHR, SIP and KBC

·         O&G: PVD