Vietnam Daily Market Recap Nov 30 – ETF Monitor

Dear Valued Clients,

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

Market Commentary: The VN-INDEX ended gaining streak with 0.7% decline

The VN-INDEX lost 7.1pts as profit-taking activities emerged, targeting on almost large caps after a strong gain of 20.2pts last week. The index began Monday’s session optimistically and quickly rose to its intraday high of 1,012.5pts (+0.2%). The strongest support came from TCB and TPB, which jumped 1.7% and 6.9%, respectively, and contributed a combined 0.7pts to the index’s advance. Other large caps also joined the rally including VRE (+1.6%), BCM (+2.2%), MBB (+1.8%), and HDB (+2.6%). However, profit-taking activities emerged and pushed the index down to its intraday low of 1,002.6pts (-0.8%). Notably, VCB was the largest laggard, falling 1.6% to close at VND93,000 and wiping 1.6pts off the index’s move. The stock was followed by VIC (-1.6%), VNM (-1.5%), BID (-1.8%), HPG (-2.1%), CTG (-1.6%), and MSN (-2.0%). As a result, the VN-INDEX declined 0.7% to end at 1,003.1pts and the HNX-INDEX also plunged 0.3% to close at 147.7pts.

All sectors lost ground today, led by Materials (-1.4%), IT (-1.3%), and Consumer Staples (-1.3%). Top index movers included TCB (+1.7%), TPB (+6.9%), VRE (+1.6%), BCM (+2.2%), and MBB (+1.8%). Top index laggards consisted of VCB (-1.6%), VIC (-1.2%), VNM (-1.5%), BID (-1.8%), and HPG (-2.1%). Top three major put-through transactions were HPG with 24.3m shares (VND821.1bn), FUEVFVND with 20.1m shares (VND305bn), and SJS with 7.6m shares (VND186.8bn).

Foreigners net sold on HOSE to the amount of VND165.1bn, and also net sold on HNX to the amount of VND2.2bn. They mainly bought FUEVFVND (VND307.7bn), VNM (VND129.4bn), and VRE (VND91.8bn); and mainly sold VNM (VND133.8bn), CTG (VND104.4bn), and VIC (VND95.4bn).

Market News

Oil prices drop as OPEC+ struggles to reach production agreement

Oil prices fell on Monday as markets reacted to reports that major producers disagree on how much oil to pump in the coming months. European Brent oil intermittently dropped below US$46/barrel, around US$2 lower than on Friday. The US benchmark crude oil brand West Texas Intermediate briefly fell below US$44.50. (Bloomberg)

Vietnam welcomes new FDI inflows from overseas

Foreign direct investment (FDI) inflows in Vietnam are set to record strong growth as the world moves past the novel coronavirus (COVID-19) epidemic, with plenty of investment coming from overseas Vietnamese, according to insiders. According to data published by the Ministry of Planning and Investment, as of October, overseas Vietnamese from 27 countries worldwide have injected money into 362 local FDI projects, with a total registered capital of US$1.6bn. Of the investment, overseas Vietnamese in the United States have made investments into 18 projects capitalized at US$105.8m (accounting for 22.38% of the number of projects and 6.6% of OVs’ investment capital in the country), followed by investment from Vietnamese expats from France, Australia, China, and Germany. The majority of FDI projects focus on the processing and manufacturing industry, including 143 projects with capital of US$725.14m, trailed by the real estate, accommodation services, and construction sectors. At present, 42 out of 63 localities nationwide have attracted the investment capital source, with Hanoi luring 79 projects valued at US$476.8m, followed by Long An, Binh Thuan, Hai Phong, and Dong Nai. Deputy Minister of Industry and Trade Tran Duy Dong affirmed that the Party and State have deployed a range of policies in an effort to attract a greater number of overseas Vietnamese to invest in the country. Most notably, according to the Investment Law, foreigners are able to invest in the nation in the form of FDI capital contribution, or through other methods such as purchasing shares or business cooperation contracts. Furthermore, the Law on Housing has allowed overseas Vietnamese to purchase homes and other assets legally in the nation, therefore creating the optimal conditions for Vietnamese expatriates to invest and contribute locally. (Vietnamnet.vn)

ETF Monitor

SHB likely to be added in V.N.M ETF

MVIS Vietnam Index: SHB to move in

For V.N.M ETF rebalancing, SHB is likely to be added into V.N.M ETF’s portfolio, as it met all the MVIS Vietnam Index requirements and fell into top 85% of the free-float market capitalization of the investable universe qualified for selection.
We expect the country weight of Vietnam to stay at 67% of the index with the total number of Vietnam stocks at 16.
By this change, we estimate V.N.M ETF will buy about 22m SHB shares in this review, equivalent to 4% of V.N.M ETF’s NAV.

FTSE Vietnam Index: No change

Based on data as at 26 Nov 2020, we estimate FTSE VN portfolio has no change in this review.
PDR passed the liquidity criteria in this review, but PDR needs to pass the liquidity rule for two consecutive reviews before being a constituent of FTSE VN ETF again as it was removed from FTSE VN in 2Q20 review.

Read the full report: HERE

Notable Corporate Events

Dong Phu Rubber JSC (DPR VN, HOSE) – Dividend Payment: DPR has set 19 Dec to be the record date for paying the 2020 cash dividend of VND2,500/share. The payment will be made on 31 Mar 2021. (Ndh.vn)

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