Vietnam Daily Market Recap September 17, 2024_FPT Analyst note, VRE Update & OCB Initiation

Market commentary: Market rebounds, led by real estate, brokerages

The VN-Index was little changed in the morning session but buyers stepped in in the afternoon, sparking a strong rally as the index closed up 1.6%, or 19.69 points, to 1,258.9. HNX also increased by 0.6%, or 1.5 points, to 232.3.

Most sectors gained today, except for Industrials (-0.2%).

Real estate (+2.4%) was the best performing sector, led by VHM (+5.4%), which has increased by about 27% since revealing its plan to buy back treasury shares in early August. VHM received approval from shareholders to execute its share buyback plan and has submitted required documents to the State Securities Commission (SSC). The company expects to start repurchasing shares with a value of VND16.6tn (USD662mn) around the end of September 2024, so that the plan can be completed in 4Q. In our latest VHM update report, we assume that the average purchase price will be equal to its average book value per share in 1H24 of VND44,733/share.

Meanwhile, NVL (+0,0%) shares fell sharply after HOSE announced that NVL was given a warning because the company has not submitted its audited financial statements for the first six months of 2024.

Financial Services (+2.3%) also saw strong gains due to unconfirmed rumors that a removal of pre-funding requirements will be approved in the next few days. If true, this would remove a key obstacle for Vietnam’s stock market to be upgraded to emerging market status by MSCI. VCI (+5.1%), MBS (+3.4%), VND (+3.2%) and FTS (+3.2%) led the sector.

Banking stocks (+1.6%) performed positively after the State Bank announced a reduction in the lending interest rate for secured loans (OMO) to 4%/year from the 4.25%/year that was maintained since the beginning of August. VCB (+1.8%) and BID (+2.0%) led bank tickers.

FPT (+1.4%) traded in the green throughout the session thanks to positive business results. In 8M24, FPT saw significant growth in total revenue and PBT, up 20.8% and 19.9% YoY, respectively, reaching VND39.7tn and VND7.1tn (see our Analyst note).

Foreign investors continued to maintain net buying a second session with a total value of VND522bn (USD21.2mn), with buying momentum focused on VHM (VND193bn, USD7.9mn), FPT (VND188bn, USD7.7mn) and SSI (VND45.6bn, USD1.9mn). On the other hand, MWG was the most net sold at VND144bn (USD5.9mn) followed by KDH (VND34.4bn, USD1.4mn).

Read the full report: HERE