Vietnam – Daily Market Recap Nov 05

Dear Valued Clients,

We would like to send you our Daily Market Recap for today

Market Commentary: The VN-INDEX dropped 0.2% on the second day awaiting the US Election final result

The VN-INDEX slightly dropped 0.2% to 937.8pts due to Materials and Financials large caps fall. Following the positive sentiment from the U.S. stock market, after the ATO session, the VN-INDEX began to rise with the support from Consumer Staples and Real Estate large caps, including MSN (+4.4%), VNM (+0.7%), and VIC (+1.0%). However, in the afternoon session, the VN-INDEX lost momentum and turned red in the last minutes. Selling pressure came from Materials and Financials large caps, led by BID (-1.8%), CTG (-1.1%), and HPG (-1.3%), eroding 1.5pts from the index. Notably, foreigners ended a 30-day net-selling streak with a total net bought value of VND20.5bn in HOSE and HNX. At the end of the session, the VN-INDEX closed at its intraday low of 937.8pts (-0.2%) while the HNX-INDEX fell 0.3% to 138.3pts.

Consumer Staples (+1.1%), Real Estate (+0.4%), and Consumer Discretionary (+0.1%) rose, while IT (-1.8%), Materials (-1.0%), and Financials (-0.9%) lost ground today. Top index movers included MSN (+4.4%), VIC (+1.0%), VNM (+0.7%), KDH (+2.7%), and VRE (+0.6%). Top index laggards consisted of BID (-1.8%), GVR (-3.9%), HPG (-1.3%), CTG (-1.1%), and VPB (-2.1%). Top three major put-through transactions were HDB with 6.1m shares (VND153bn), GEG with 10m shares (VND150bn), and VIC with 1.1m shares (VND108.4bn).

Foreigners net bought on HOSE to the amount of VND13.4bn, and also net bought on HNX to the amount of VND7.1bn. They mainly bought VIC (VND123.8bn), VNM (VND90.6bn), and VHM (VND49.6bn); and mainly sold MSN (VND94.4bn), VHM (VND83.7bn), and VIC (VND72.4bn).

Market News

Oil drops on fading stimulus hopes and post-election uncertainty

Oil dropped in Asian trading – after jumping the most in a month on Wednesday – as expectations for a big dollop of U.S. fiscal stimulus receded following a closer-than-expected and still undecided election. Futures in New York fell below US$39/barrel after rising 4% Wednesday. Recounts and legal challenges could also lead to a prolonged period of uncertainty. (Bloomberg

Vietnam’s second stimulus package focus on most affected sectors

The second stimulus package to aid the economy amid the COVID-19 pandemic would focus on the most affected sectors, including aviation, tourism and consumers, according to the Ministry of Planning and Investment. The policies for the aviation industry would support cash flow and liquidity for airlines to help them avoid bankruptcy which is estimated at around VND11tr (US$474m). Due to the impacts of the COVID-19 pandemic, aviation companies were facing tumbling revenues and shortages of cash which might push them into insolvency. For the tourism industry, the ministry proposed a reduction of 80% of deposits for two years, from November 2020 to November 2022, aiming to help tourism enterprises have more working capital for their operation. The ministry proposed another five-month extension of deadlines for payments of taxes and land use fees regulated in Decree 41/2020/NĐ-CP for enterprises operating in affected sectors. The ministry also proposed value added tax (VAT) on necessary consumer goods to be reduced to promote consumption. The tax reduction would help lower prices of goods and services which would stimulate shopping. It was estimated that every 1% reduction in VAT could promote consumption equivalent to 0.2% of GDP, according to the ministry. However, the ministry noted that this policy might have a significant impact on the State budget revenue. It included a fiscal support package worth VND73.1tr, a monetary and credit support package worth VND36.6tr, a social welfare package worth VND62tr and other packages including support in power prices and telecommunication service prices. (Vietnamnet.vn)

Notable Corporate Events

Becamex Infrastructure Development JSC (IJC VN, HOSE) – Dividend payment: IJC has set 20 Nov to be the record date for paying a cash dividend of VND500/share, the Management Board said. The payment will be made on 10 Dec. (Ndh.vn)

Should you have any question, please feel free to contact us.