Vietnam – Daily Market Recap Nov 06

Dear Valued Clients,

We would like to send you our Daily Market Recap for today

Market Commentary: The VN-INDEX stayed nearly flat at 938.3pts

The VN-INDEX fluctuated around its reference level and closed at 938.3pts (+0.1%). After the opening bell, Vietnam’s main index rose to its intraday high at 941.2pts (+0.3%), led by Materials and Consumer Staples large caps, including MSN (+2.3%), BHN (+3.7%) and HPG (+0.5%). In the afternoon session, selling pressure emerged at some large caps like GAS (-1.0%), VRE (-1.9%) and MWG (-1.7%), wiped out 0.9pts from the index. However, today’s movers managed to keep the index above the reference level at late trading, hence ending at 938.3pts (+0.1%). The HNX-INDEX rose 0.7% to 139.3pts.

IT (+1.1%), Materials (+0.4%), and Consumer Staples (+0.4%) rose, while Energy (-0.6%), Utilities (-0.6%), and Consumer Discretionary (-0.5%) lost ground today. Top index movers included MSN (+2.3%), VIC (+0.6%), GVR (+2.3%), BHN (+3.7%), and HPG (+0.5%). Top index laggards consisted of GAS (-1.0%), VRE (-1.9%), MWG (-1.7%), MBB (-1.6%), and TCB (-0.9%). Top three major put-through transactions were DIG with 8.2m shares (VND159.8bn), VIC with 0.5m shares (VND48.9bn), and VHM with 0.6m shares (VND43.4bn).

Market News

Oil drops toward US$38 on surging virus and fraught U.S. election

Oil fell toward US$38/barrel amid a surging coronavirus and a lack of clarity from the U.S. election, but was still headed for a weekly gain on signs the OPEC+ alliance will delay easing production cuts. U.S. crude futures dropped 1.4% Friday, but are still up around 7% for the week. Recounts and legal challenges may also lead to a prolonged period of uncertainty. (Bloomberg)

Vietnam’s 2020 M&A value to halve to US$3.5bn due to pandemic

Vietnam’s merger and acquisition market is considered the least affected among the Southeast Asian countries since the onset of the COVID-19 pandemic, but in the new normal state, M&A value is expected to fall substantially to just US$3.5bn in 2020. This number is only 48.6% of 2019’s value of US$7.2bn. After more than a decade of strong growth with thousands of transactions and a total value of nearly US$50bn, M&A activities have proven an efficient channel of raising capital, contributing to Vietnam’s economic restructuring and State-owned enterprises equalization process. Data by AVM showed M&A activities are vigorous in the fields of real estate, finance-banking, industry, retail, logistics, agriculture and medical services. Foreign investors have also dominated the market with companies coming from Japan, Republic of Korea, Thailand and Singapore. Investors and businesses in Vietnam still believe in the resilience of the M&A market in the post-pandemic period. According to CMAC Academy’s forecast, the market could see a V-shaped recovery in 2021-22 with value reaching US$4.5-5bn next year and US$7bn by 2022. (Vietnamnet.vn)

Notable Corporate Events

Nam Viet Corporation (ANV VN, HOSE) – Dividend payment: ANV has set 04 Dec to be the record date for paying a cash dividend of VND1,000/share, the company said. The payment will be made on 30 Dec. (Ndh.vn)

Should you have any question, please feel free to contact us.