Vietnam Daily Market Recap June 26, 2024 – HPG, BAF Updates

Market Commentary: Market edges higher in choppy trading

The VN-Index popped higher at the open on Wednesday but quickly sold off and was trading in the red by the end of the morning session. However, buyers stepped in in the afternoon and the index closed up 0.4%, or 4.68 points, to 1,261.24, with market liquidity reaching VND20.8tn (USD817mn) (+33% compared to yesterday). In contrast, the HNX slightly declined, decreasing by 0.2%, or 0.51 points, to 239.68

Chemicals (+3.9%), Industrial goods & services (+2.5%) and Telecommunications (+2.0%) were the top performing sectors, led by GVR (+7%), ACV (+2.4%) and VGI (+3.6%). On the other hand, Construction & Materials (-0.1%), Financial services (-0.3%) and Basic resources (-0.2%) weighed on the market.

GVR hit its ceiling price and emerged as today’s top performer. Investors are optimistic about GVR’s business results in 2Q24 as the company has benefited from increased rubber export prices.

BCM (+4.8%) successfully issued bonds worth VND800bn (USD31mn), with a term of three years, maturing on June 17, 2027, and an annual interest rate of 10.5%. Conversely, BCM announced the repurchase of VND400bn (USD16mn) of bonds out of a total issuance of VND2tn (USD79mn), representing 20% of the total bond issuance, scheduled for completion on August 31. Investors expect that this debt restructuring will help BCM achieve financial balance in the near future.

Foreign investors had their fifteenth consecutive net selling session today with a net trading value of VND600bn (USD24mn), focusing on FPT (VND251bn, USD9.9mn), FUEVFVND (VND142bn, USD5.6mn) and MWG (VND125bn, USD4.9mn). On the contrary, TCB (VND80bn, USD3.1mn), DBC (VND42bn, USD1.6mn) and MSN (VND37bn, USD1.5mn) were mainly bought.

Other top gainers included FPT (+1.4%), PLX (+3.4%) and BID (+0.7%). Conversely, top laggards today included VCB (-0.4%), CTG (-0.9%), VHM (-0.8%), VRE (-2.3%) and SAB (-1.0%), which dragged 1.6 points off the VN-Index.

Read our full report: HERE