Vietnam Daily Market Recap November 5, 2024 – Market Strategy Notes, VTP Earnings Flash

Market commentary: Stocks flat; telecoms gain on strong results

The VN-Index meandered between positive and negative territory on Tuesday, eking out a 0.1% gain to close at 1,245.76. Total trading value plunged 39% from yesterday’s session to VND8.2tn (USD328mn). The HN-Index also increased 0.2% to 224.86.

The Telecommunications sector (+2.2%) was a strong pillar supporting the market today, led by VGI (+4.0%), FOX (+1.1%) and CTR (+0.4%). Most companies in this sector recently announced positive 3Q24 results.

Other market drivers included Travel & Leisure (+2.1%), Basic resources (+0.6%), Chemicals (+0.8%), and Retail (+0.6%). In contrast, market laggards were Financial Services (-0.3%), Technology (-0.2%) and Banks (-0.1%).

Cash flow remains cautious without gravitating toward any specific sector, as investors seem to be holding their breath ahead of today’s US presidential election. The two candidates – Vice President Kamala Harris (Democratic Party) and former President Donald Trump (Republican Party) – differ significantly in their policies but are largely focused on issues like taxes, inflation, US-China trade relations, immigration, abortion laws, the war in Ukraine, and environmental policies. Historically, markets have generally rallied post-election, regardless of which party takes power, as election uncertainties are removed. The biggest risk to short-term market sentiment would be if no winner is declared tomorrow, either because the vote is too close to call or because either candidate refuses to concede.

Foreign investors maintained their selling trend, as net selling value reached VND854bn (USD33.7mn), focusing on MSN (VND169.5bn/USD6.7mn), VHM (VND115.5bn/USD4.6mn), MWG (VND86.4bn/USD3.4mn), and FPT (VND74.1bn/USD2.9mn). In contrast, buying momentum focused on TCB (VND67.1bn/USD2.6mn), VPB (VND32.5bn/USD1.3mn) and EIB (VND32.4bn/USD1.3mn).

Top performing stocks included HVN (+5.6%), GVR (+1.7%) and HPG (+0.8%). On the other hand, top laggards included CTG (-1.8%), BID (-0.6%) and GAS (-0.4%).

Read the full report: HERE