Vietnam Daily Market Recap November 26, 2024: BID, DPM & DCM Analyst Note

Market commentary: Stocks rise, led by financials

The VN-Index opened higher Tuesday and was able to sustain positive momentum throughout the session for a second straight day to close up 0.6% at 1,242.1. Total trading value continued to improve, increasing by 21.2% compared to Monday’s session to VND11.2tn (USD440.5mn). The HN-Index also closed up 0.7% at 223.7. Gains were widespread as advancing tickers outnumbered those declining by 290 to 101 on HOSE and 104 to 53 on HNX.

The Financial Services sector (+1.0%) alongside Chemicals (+0.9%), Banks (+0.8%) and Technology (+0.9%), were the main contributors to the market’s upward momentum. Conversely, Travel & Leisure (-1.1%), Telecommunications (-0.7%) and Oil & Gas (-0.2%) dragged on the market.

Financial sectors were particularly strong today. VCB (+1.2%) and BID (+1.5%) were the leading contributors to the VN-Index, and while a few bank stocks were flat, none declined. Many banks have attractive P/B valuations and a strong outlook for credit growth. Furthermore, due to strong recent business performance, they are well-positioned to pay good dividends, either in cash or in shares. Among securities companies, every stock increased today, with EVF (+2.9%) and VIX (+2.8%) recording the strongest gains.

The Chemicals sector (+0.9%) gained, led by fertilizer companies DPM (+2.7%) and DCM (+0.9%), thanks to the expectation that the National Assembly will approve the draft amendment to the Value-Added Tax (VAT) Law today. On June 17, 2024, during the 7th Session of the 15th National Assembly, the Government submitted the draft amendment to the Value-Added Tax (VAT) Law. This draft maintains 26 groups of goods eligible for tax deductions but adds 12 items and services (previously not subject to VAT), including fertilizers, which will now be taxed at a VAT rate of 5%. The inclusion of fertilizers under the 5% VAT category aims to prevent product cost increases. This move also seeks to enhance the competitiveness of domestic production amid intense competition with imports and provide better support for agricultural production.

The Travel & Leisure sector (-1.1%) fell today, including HVN (-2.7%) and MVN (-5.6%) following the announcement by the Government Inspectorate regarding the results of its investigation into the restructuring of state-owned enterprises and the conversion of land use purposes from business to residential and real estate during 2011–2021 at the Ministry of Transport (MOT). The investigation uncovered numerous violations in the processes of restructuring, equitization, and land management during the privatization and divestment of state capital at leading enterprises under the MOT, including Airports Corporation of Vietnam (Ticker: ACV) and Vietnam Airlines Corporation (Ticker: HVN).

Foreign investors net bought VND231.9bn (USD9.1mn) today. Buying momentum focused on FPT (VND137.4bn, USD5.4mn), DPM (VND127.6bn, USD5.0mn) and MSN (VND112.2bn, USD4.4mn). On the other hand, net sales include PNJ (VND109.6bn, USD4.3mn), DGC (VND78.2bn, USD3.1mn) and VCB (VND47.6bn, USD1.9mn).

Top performers today included VCB (+1.2%), BID (+1.5%), FPT (+1.0%), and GVR (+1.3%). Top laggards were HVN (-2.7%), VHM (-0.7%) and VTP (-4.1%). Top performers today included VCB (+1.2%), BID (+1.5%), FPT (+1.0%), and GVR (+1.3%). Top laggards were HVN (-2.7%), VHM (-0.7%) and VTP (-4.1%).

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