Vietnam Daily Market Recap February 17, 2025 – OCB & DGC Analyst Notes

Stocks drop while Basic Resources, Financials outperform

On Monday, the VN-Index traded in positive territory for most of the session but sold off sharply into the close, ending down 0.3% at 1,272.7. Total trading value increased 18% from last Friday to reach VND17.6tn (USD692.6mn). The HN-Index maintained in positive territory, rising 0.9% to 233.1.

Market movements were mixed. Sectors that decreased included Banks (-0.3%), Food and Beverages (-0.8%), Industrial Goods & Services (-2.9%), and Telecommunications (-2.3%). On the other hand, sectors that increased include Basic Resources (+2.8%), Financial services (+1.5%), and Construction and Materials (+1.7%).  

Basic resources (+2.8%) extended its recent hot streak, led by mining stocks, including KSV (+6.2%), MSR (+14.8%), MTA (+14.9%), BMC (+7.0%) and FCM (+7.0%), following China’s 15% reciprocal tariff on some US products and tightened exports of several critical minerals to the US, such as tungsten, tellurium, ruthenium, and molybdenum. MSR has more than doubled since the end of January.

Financial services (+1.5%), led by VIX (+5.9%), EVF (+6.8), VND (+2.7%), and SHS (+2.1%) also performed well, likely due to a brighter market outlook for 2025, which is fueled by two main drivers: 1) valuations are still attractive, as the VN-Index’s P/E ratio hovers near one standard deviation below its five-year average, thanks to strong fourth-quarter earnings results; and 2) liquidity and index performance are anticipated to strengthen, given the Government’s push for higher GDP and credit growth in 2025.

Rubber stocks, including PHR (+2.5%), DPR (+3.0%), and RTB (+1.5%) continued to lead the Chemicals sector (+0.1%) higher amid rising rubber prices. DPR, in particular, posted strong gains following the company’s announcement of an auction for 360.3 hectares of fully depreciated rubber trees , valued at over VND106bn (USD23.5mn), for liquidation, which investors interpret as a strategic move to unlock capital, reduce maintenance costs, and pave the way for more productive replanting, thereby boosting DPR’s future profitability.

Foreign investors net sold today, with net selling value surging to VND601.1bn (USD23.6mn) from last week’s VND177.8bn (USD7.0mn). Selling momentum focused on MWG (VND162.0bn, USD11.2mn), VNM (VND100.7bn, USD6.7mn) and HDB (VND72.8bn, USD2.8mn). In contrast, they bought HPG (VND53.9bn, USD2.1mn), EIB (VND52.7bn, USD2.0mn,) and SHB (VND44.9bn, USD1.7mn).

Top laggards for the day included BID (-1.1%), MSN (-2.5%), and CTG (-1.0%). Top gainers included GEE (+6.9%), SSB (+1.7%), and VIX (+5.9%).

Read the full report: HERE