Vietnam Daily Market Recap November 06, 2024 – 3Q24 Earnings Review & ETF Report

Stocks rise, led by banks, real estate

The VN-Index popped higher at the open on Wednesday and maintained its positive momentum, closing up 1.3% to 1,261.28. A similar trend also appeared in the HNX-Index (+1.3%), as it rose to 227.76.

Almost all sectors rose, led by Real Estate (+1.5%), Banks (+1.2%), Chemicals (+3.3%), Financial Services (+1.7%), Basic Resources (+1.5%) and Construction & Materials (+1.1%). Only Healthcare (-0.1%) fell.

GVR (+5.1%), BID (+1.4%), TCB (+1.9%), HPG (+1.7%), and CTG (+2.4%) were the top positive contributors to the index today, with GVR contributing up to 1.7 points to the increase of the VN-Index. In 3Q24, GVR’s revenue and net profit after tax increased +24% YoY (VND7.7tn, USD303.9mn) and +127% YoY (VND1.1tn, USD43.4mn), respectively. This impressive result was thanks to natural rubber prices increasing more than 35% YoY, while profit before tax from natural rubber production increased 88% YoY. In addition, profit before tax from the wood processing segment reached VND39bn (USD1.5mn) in 3Q24, compared to a loss in the same period last year.

Several large industrial property stocks hit their ceiling price today, such as KBC (+6.9%), SZC (+7.0%) and VGC (+7%), while others came close like SIP (+6.9%). GVR also derives profits from its industrial park segment. The rise in these stocks came as a reaction to the results of the US election.  Investors believe that the new Trump administration will put stiff tariffs on Chinese exports which will increase demand, especially from Chinese firms, to shift their operations to Vietnam and other Southeast Asian countries. It remains to be seen whether these expectations will be fulfilled or whether President Trump will also look unfavorably on exports from Vietnam given the country’s position as having the third largest trade surplus with the United States after China and Mexico and concerns by US regulators that Vietnam manages its currency to support export manufacturing.

Foreign investors maintained their selling trend, as net selling value reached VND383.5bn (USD15.1mn) today. Selling momentum focused on VHM (VND150bn, USD5.9mn), MSN (VND134.6bn, USD5.3mn), SSI (VND67.3bn, USD2.7mn), VCB (VND51.9bn, USD2.1mn) and DBC (VND51.3bn, USD2mn). Buying momentum focused on HPG (VND42.8bn, USD1.7mn), TCB (VND36.6bn, USD1.4mn) and STB (VND25.6bn, USD1mn). As the results of the US election became clear, the US dollar DXY Index broke through 105. A stronger US dollar has driven foreign selling throughout the year.

Top performers today included GVR (+5.1%), BID (+1.4%), TCB (+1.9%), HPG (+1.7%) and CTG (+2.4%). Top laggards include HVN (-1.1%) and KDC (-1.6%).

Read the full report: HERE