Vietnam Daily Market Recap September 26, 2024 – SAB Initiation

Market commentary: Stocks hit fresh 11-week high but repelled by 1,300

The VN-Index began to rise after the lunch break, but then, as it hit 1,298 – with 1,300 on the horizon – it was repelled back but still closed up 0.3%, or 4.01 points, at 1,291.5. Today’s close was the highest since July 9 and the intraday high was the highest since June 13. Trading value exceeded yesterday’s high liquidity by 6.3% DoD at VND21.8tn (USD885.1mn). The HNX inched higher by 0.03%, or 0.08 points, to 235.92.

Oil & Gas (+1.3%) was the best performing sector today, led by BSR (+3.3%) after the company won the bidding for No. 02: RON 83 Petrol Purchase, Diesel-62 and JEt A-1K amounting to VND956.2bn (USD38.8mn). Automobiles & Parts (+1.0%) and Banks (+0.7%) also gained. On the other hand, Media (-0.9%), Telecommunications (-0.8%) and Travel & Leisure (-0.6%) were the sectors that declined the most.

Banking stocks rose today due to several key factors. 1) Foreign investor inflows into the Vietnamese stock market have surged, driven by increased confidence in the country’s economic stability; 2) banking stocks are currently trading at attractive valuations, offering investors a compelling opportunity to buy at relatively cheap prices; and 3) expectations for the recovery in business performance of some banks, like TPB, have boosted sentiment. TPB significantly increased its provision expenses in 2H23 to address bad debts, but in 2H24, these costs are expected to decline as most troubled debts have already been provisioned.

TPB (+6.7%) hit its ceiling price with a record-high daily volume of over 60 million shares. The price hike began after TPB finalized the list of shareholders to receive a 20% stock dividend on September 24. The bank is expected to issue more than 440.3 million shares to pay dividends to existing shareholders, raising the charter capital by VND4.4tn (USD179mn)  to a maximum of VND26.4tn (USD1bn).

MSB (+5.4%) also surged thanks to solid credit growth in 1H24, as investors expect that it will continue to maintain this momentum in 2H24.

TCM (+3.1%) surged after announcing its impressive 8M24 results with net profit exceeding the yearly plan by 18% to USD8.1mn, and new orders reached 92% of orders for the fourth quarter.

Foreign investors net bought today with VND974bn (USD38.4mn). The buying momentum focused on TPB (VND129bn, USD5.2mn), VNM (VND115bn, USD4.7mn), and VHM (VND106bn, USD4.3mn). Foreigners net sold HPG (VND67bn, USD2.7mn), VPB (VND47bn, USD1.9mn) and NTW (VND31bn, USD1.3mn).

The top gainers of the day were HDB (+3.9%), TPB (+6.7%), and VNM (+1.6%), while the biggest laggards included VCB (-0.3%), HVN (-2.1%), and HPG (-0.6%).

Read the full report: HERE