Vietnam Daily Market Recap July 16, 2024

Market Commentary: Market inches higher; banking, healthcare lead gainers

The VN-Index popped by nearly 10 points in the first hour of trading on Tuesday before falling in the afternoon to eke out a small gain of 0.1%, or 1.4 points, to 1,281.2 at the close. The HNX rose by 0.03%, or 0.1 points, to 244.9.

The Banking sector (+0.8%) performed well today, led by MBB (+2.2%), BID (+1.3%) and VCB (+0.5%). Bank shares were supported by news that credit growth hit 6% in 1H24, reaching the target for the first six months of 2024 set by the Government and the State Bank (SBV). As of June 24, 2024, credit growth had only reached 4.45%. In just the last week of June, credit grew by 1.5%.

Utility Services (+0.3%) and Healthcare (+6.6%) also enjoyed gains, led by PEG (+11.8%), DCL (+7.0%) and DBD (+6.9%).

DBD rose sharply as the company signed a memorandum of understanding (MOU) with Crearene AG, a company based in Frauenfeld, Switzerland, to develop creatine treatment solutions for dialysis patients. The goal of this cooperation is to sign a copyright transfer contract, and bring new healthcare solutions for dialysis patients.

On the contrary, Real Estate (-0.3%), and Travel & Leisure (-3.2%) traded in the red today, led by NVL (-4.6%), VIC (-0.7%) and HVN (-7.0%). HVN is up 174% YTD and was the fastest rising stock in the VN-Index in 1H24, but has declined 14% since peaking on July 5. NVL declined as Chairman of the Board of Directors Bui Thanh Nhon registered to sell 2 million NVL shares, extending a divestment by major shareholders from Novaland.

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