Vietnam Daily Market Recap August 22, 2024 – PNJ Update

Market Commentary: Stocks take breather as index approaches 1,300

After jumping the last four trading days and 8% over the last two and a half weeks, the VN-Index opened higher in the morning but saw profit taking as it approached the psychological barrier of 1,300, closing down by a marginal 0.1%, or 1.27 points, at 1,282.78. The HNX-Index was also little changed, rising just 0.02% to 238.47.

Sectors were mixed today. Banks (+0.1%) rose slightly, led by SOCBs such as CTG (+1.2%), BID (-0.6%), and VCB (-0.4%). Real estate (+0.1%) also inched higher, led by VHM (+0.1%), VRE (+4.2%) and NVL (+2.4%). Other sectors that rose today included Financial Services (+0.5%), Technology (+0.3%), Retail (+0.3%), Oil & Gas (+0.1%), Automobiles & Parts (+1.0%), Personal & Household Goods (+0.1%) and Healthcare (+0.3%).

ITA (+6.1%) almost hit its ceiling price today after its third largest shareholder, Tan Dong Phuong JSC, registered to buy 5.8 million shares to increase its ownership to 12.5% from 11.8%. The share purchase will be from August 26 to September 24 under a negotiated transaction.

SSB (+4.8%) led the banking sector after announcing the issuance of 329 million shares to pay dividends and another 10.3 million to increase its capital. After two stock issuances, the charter capital of SSB will increase to VND28.3tn (USD1.1bn)

VRE (+4.2%) surged today as management stated in an earnings call that loans from Vingroup are scheduled to be repaid beginning in September. The stock has increased 18% since August 5. VHM (+0.1%) also rose, continuing its upward momentum following the announcement of purchasing stocks.

Foreign investors net sold for a second day with a net trading value of VND546.8bn (USD21.9mn), focusing on HPG (VND245.8bn, USD9.8mn), HSG (VND192bn, USD7.7mn) and VPB (VND50.8bn, USD2.0mn). On the contrary, FPT (VND138.4bn, USD5.5mn), STB (VND50.4bn, USD2.0mn) and VCB (VND48bn, USD1.9mn) were mainly bought.

Other top performers today included TCB (+1.6%), while top laggards included HPG (-1.5%) and VNM (-1.5%).

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