Vietnam Daily Market Recap July 25, 2024 – PNJ Earnings Flash

Market Commentary:  Stocks resume downward trend

After a slight recovery of about 0.5% in yesterday’s trading session, the VN-Index resumed its downward trend on Thursday, closing down 0.4%, or 5.2 points, to 1,233.2. The index has dropped about 4.7% since July 9. At the same time, market liquidity decreased sharply by about 40% DoD to VND9.7tn (USD381mn), reflecting the cautious sentiment of investors. The HNX Index also fell by 0.4%, or 0.9 points, closing at 235.3.

Real estate (+0.3%) and Chemicals (+0.7%) were the best performing sectors, led by VIC (+1.7%), BCM (+3.3%) and GVR (+0.9%). VIC paid VND4.6tn (USD183.6mn) in principal and interest of five bond lots in 2Q24. The company also recently completed the repurchase of USD500mn of convertible bonds issued in 2021.

Since the end of April, BCM has surged 37% amid the Prime Minister approving a reduction of state capital at Becamex IDC from 95.44% to 65% by the end of 2025. This is the basis for state shareholders to sell capital and reduce ownership at Becamex IDC.

In contrast, Banks (-0.7%), Basic Resources (-1.0%) and Financial services (-1.5%) were in the red, led by CTG (-2.0%), HPG (-1.3%) and SSI (-3.0%). Foreign investors net sold today with a net trading value of VND492bn (USD19mn), focusing on SSI (VND168bn, USD7mn), TLG (VND71bn, USD3mn) and VHM (VND60bn, USD2mn). On the contrary, SBT (VND75bn, USD3mn) and FPT (VND24.6bn, USD1mn) were mainly bought.

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