Daily Market Recap May 21, 2024

Market closes flat as rally takes breather

The VN-Index fluctuated between positive and negative territory in Tuesday trading, dropping as much as 0.5% in the afternoon before rallying in the final 45 minutes to close down just 0.03%, or 0.44 points, to 1277.14 points. Meanwhile, the HNX Index rose 0.3% to close at 243.9.

Retail (+0.8%), Chemicals (+0.6%) and Technology (+0.6%) were in the green through this session, led by PNJ (+0.6%), DCM (+5.3%) and FPT (+2.3%).

PNJ (+0.6%) gained thanks to positive business results in the first four months of 2024 as gold bar revenue reached VND6.8tn (USD267mn), an increase of 80% YoY and the highest level since this segment announced monthly results.

DCM (+5.3%) also led the market today, contributing 0.3 points to the Index. DCM completed the acquisition of Korea – Vietnam Fertilizer Company (KVF) to penetrate the NPK market in the Southeast, Central Highlands and Central regions, while Ca Mau Fertilizer’s current NPK factory serves the needs of the Southwest region and Cambodia. The company aims to increase KVF’s sales volume to 150,000 tons and make the company profitable by the end of 2024.

In 4M24, FPT (+2.3%) revenue and pre-tax profit increased 20.6% and 19.7% YoY to VND19tn (USD746mn) and VND3.5tn (USD138mn), respectively. Technology sector revenue grew 25% YoY to VND11.5tn (USD452mn), thanks to strong growth from the foreign IT Services segment (+29.2% YoY). FPT said it enjoyed 20 large projects with a scale of over USD5mn in 4M24.

Livestock tickers also outperformed the overall market today, led by MML (+12.9%), HAG (+1.0%), and DBC (+1.5%). Swine prices rose slightly by VND1,000/kg.

In contrast, Banks (-0.4%), Food & Beverage (-0.3%) and Basic Resources (-0.5%) dragged on the market, led by TCB (-0.9%), VNM (-0.3%), and HPG (-0.5%).

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