Vietnam Daily Market Recap December 25, 2024 – MSH & VJC Updates

Stocks surge to two-month high, led by banks

The VN-Index had a very merry Christmas, surging 1.1% on Wednesday to 1,274.04, the highest close since October 21. The market flourished under the leadership of blue-chip stocks, with widespread green across the board. At one point, the VN-Index climbed past the 1,280-point mark. A morning rally continued into the afternoon session, supported by robust net buying activity from foreign investors. Total trading value on the HoSE exchange reached VND16.5tn (USD649mn), an increase of 37.5% compared to Monday’s VND12.1tn (USD475.6mn). Meanwhile, the HNX-Index rose 0.6% to 229.81.

Key sectors driving the market included Banks (+1.7%), Basic Resources (+2.6%), Financial Services (+1.4%), and Construction & Materials (+1.0%). However, Industrial Goods & Services (-1.0%) and Travel & Leisure (-1.8%) weighed on the overall market momentum.

Banking stocks jumped, with CTG standing out by rising 5.5% and contributing nearly 2.7 points to the VN-Index. So far in 2024, this stock has gained 41%, making it one of the strongest-performing banking stocks of the year. As of the end of November 2024, CTG’s total assets were estimated to exceed VND2,300tn (USD90.4bn), reflecting an increase of 14.7% YoY. Credit growth reached 14.2% YoY (14.8% as of December 10), while deposits stood at nearly VND1,700tn (USD66.8bn), up 11.3% compared to the end of 2023. The NPL ratio was maintained at a low 1.1%, with a high bad debt coverage ratio. VietinBank’s credit growth of nearly 15.0% positions it as the fastest-growing bank in terms of credit among state-owned banks. The robust increase in CTG was attributed to positive information regarding its credit growth.

According to discussions with the bank, CTG recently received a new credit limit of 18.0% for 2024, an increase of 4.0% compared to its initial credit limit. Capital inflows are favoring CTG due to expectations of a boost from public investment. In 2025, public investment is expected to drive CTG’s credit growth and enhance its asset structuring. CTG is likely to benefit from funding public investment projects and improved asset structures as State Treasury balances increase at CTG.

Another bank stock that surged was STB (+4.5%), driven by positive sentiment of 2025 earnings that was fueled by receiving 100% of the proceeds from the sale of Phong Phu and a re-rating catalyst stemming from the sale of 32.5% of shares currently controlled by the SBV.

Among the top 10 contributors to the market, nine were banking stocks, including STB (+4.5%), MBB (+2.3%), TPB (+2.2%), HDB (+2.1%), and LPB (+2.1%).

Construction firm CTD rose 3.8% as today marks the final registration date to qualify for a cash dividend of 10% of par value. While this represents only a 1%-2% dividend yield, it underscores the company’s commitment to shareholders after three years without dividends.

Top performers overall included CTG (+5.5%), TCB (+1.9%), BID (+1.4%), STB (+4.5%), HPG (+1.7%) and MBB (+2.3%). Conversely, HVN (-3.9%) lagged behind.

Foreign investors were net buyers today with a total net buying value of VND254bn (USD10mn). They focused on purchasing SSI (VND108.6bn, USD4.3mn), HPG (VND107.9bn, USD4.2mn), and STB (VND77.5bn, USD3.0mn). On the other hand, foreign investors net sold NLG (VND71.1bn, USD2.8mn), BID (VND62.2bn, USD2.4mn), and CTG (VND32.1bn, USD1.3mn).

Read the full report: HERE