Vietnam Daily Market Recap June 27, 2024 – BCM AGM note

Market Commentary: Foreign investors continue to sell amid strong dollar 

The VN-Index was little changed most of the trading session on Thursday, closing down 0.2%, or 2.15 points, to 1,259.09, with low market liquidity of VND15.1tn (USD593mn). In contrast, the HNX slightly rose 0.2%, or 0.39 points, to 240.07.  

Insurance (+1.7%) was the best performing sector, led by MIG (+6.7%), BVH (+2.8%), BIM (+1.2%) and BIC (+1.1%) as investors anticipated that these companies will enjoy higher income if interest rates rise amid the SBV’s efforts to defend the VND against a strengthening US dollar. (See our Macro Note.)   

Oil & gas was among the worst performing sectors today. Petroleum retailers PLX (-2.6%) and OIL (-3.8%) both slumped as petrol prices surged. (See our Macro Note.)

Other notable sectors were Retail (+0.6%) and Technology (+0.5%), led by MWG (+1.3%) and FPT (+0.8%). However, Automobiles and Parts (-2.3%) and Industrial Goods & Services (-2.0%) were the worst performing sectors today. 

TIP (+5.1%) surged today after announcing impressive 1Q24 results. Specifically, revenue rose 21% YoY to VND38bn (USD1.5mn) while net profit increased 220% YoY to VND27bn (USD1.1mn). This was thanks to a service provision in Tam Phuoc industrial park as businesses have returned orders and are operating more stably. In addition, the company enjoyed the reversal of provisions of Olympic Coffee Joint Stock Company, amounting to VND13bn (USD510,000) as Olympic Coffee increased capital.

Foreign investors continued to sell today as the US dollar DXY index touched 106, its highest level in two months. Today marked a sixteenth consecutive session of net selling with a net trading value of VND1.14tn (USD45mn), with selling focused on FUEVFVND (VND792bn, USD31.1mn), FPT (VND102bn, USD4mn) and TCB (VND75bn, USD3mn). On the contrary, MWG (VND105bn, USD4.1mn), PC1 (VND52bn, USD2mn) and KDH (VND42bn, USD1.6mn) were mainly bought.

Top laggards today included BID (-0.9%), TCB (-2.3%), PLX (-2.6%), POW (-3.6%), and VRE (-1.9%), which dragged 2.2 points off the VN-Index. Conversely, top gainers included FPT (+0.8%), MWG (+1.3%), BVH (+2.8%), and SAB (+1.0%)

Read our full report: HERE