Vietnam Daily Market Recap Apr 15, 2024 – DXG & PVT, MWG AGM Note

Stocks plunge in last hour of trading

After two consecutive days of gains, the VN-Index traded lower by less than 1% for most of the day until the final trading hour, when the market plummeted nearly 60 points, or 4.7% to close at 1216.6, the largest one-day loss since 4/25/2022. The HNX followed a similar pattern, falling by -4.82% (-11.63 points) to 229.71 points. Trading volume was heavy, reaching VND1,320bn (US$523,91m) on HOSE and VND161,7bn (US$64,17m) on the HNX.

The market’s moderate decline in the morning and early afternoon mirrored the reaction of markets around the world to yesterday’s attack by Iran on Israel. In response to the attack, the US dollar strengthened with the DXY reaching 106 and gold prices rose as well, both of which put pressure on equities.

However, the intense selling pressure after 2:00 pm did not seem linked to global events. In fact, no clear cause was identified as the market recorded its steepest decline in nearly two years and 160 stocks reached their floor price. Selling was particularly pronounced in the real estate sector, where investors rushed to offload their holdings. This panic-driven sell-off in real estate (-4.96%) spilled over into other sectors such as banking (-4.69%), financial services (-6.37%), oil & gas (-4.5%), and consumer goods (-4.56%).

Foreign investors net sold nearly VND1,200bn (US$477mn) across all three exchanges today, marking the highest daily net selling figure since April 3, focusing on VHM (VND278bn), CTG (VND207bn), SSI (VND84bn). This surge in foreign net sold is likely attributable to a confluence of factors, including the recent appreciation of the USD/VND exchange rate and the escalating geopolitical tensions between Iran and Israel.

SHB (+0.44%) was a rare bright spot in today’s trading session, emerging as the biggest gainer, contributing 0.045 points to the VN-Index. This price increase was driven by the registration of Mr. Do Quang Vinh, Deputy Chairman of SHB Bank, to purchase 100.2 million SHB shares in the period from April 19 to May 17. Prior to this transaction, Mr. Vinh only held 939,000 shares. The registered purchase volume is exactly equal to the amount of shares held by the two elder sisters of the bank’s chairman.

Other top performers today included BHN (+1.15%) and QCG (+4.17%). Conversely, as mentioned, banks were today’s worst performer, highlighted by BID (-6.93%), VCB (-2.75%), CTG (-6.82%) and TCB (-2.60%), which, combined with VHM (-4.72%), took away 19.1 points from the index.

Read the full report: HERE