Vietnam Daily Market Recap November 21, 2024 – CTG Update

Market commentary: Banks, telecom lead strong afternoon rally

Trading activity dropped sharply this morning as investors awaited developments from derivatives contract expiration in the afternoon. The sudden drop in trading activity was not due to cash flow issues but rather a temporary slowdown in investor activity.

The VN-Index was little changed during the morning session but showed a strong upward trend in the afternoon to close with a gain of 1.0% to 1,228.3. Total trading value decreased sharply by 30.9% compared to Wednesday to VND10.5tn (USD413.1mn). The HNX-Index increased 0.2% to 221.7.

Sectors that gained today included Banks (+1.1%), Real Estate (+0.3%), Financial Services (+1.1%), Chemicals (+1.3%) and Telecommunications (+4.9%). In contrast, sectors such as Food & Beverage (-0.5%) and Media (-0.3%) declined.

Top performers today included CTG (+2.9%), VPB (+2.7%), MWG (+3.6%) and TCB (+1.5%). Top laggards included SAB (-0.4%) and BCM (-0.3%).

Most bank stocks rose, including CTG (+2.9%), VPB (+2.7%), and STB (+2.0%). We attribute the upward momentum to expectations that the asset risk of banks remained stable during 9M24, thanks to limited lending exposure to areas affected by Typhoon Yagi. We believe bank valuations have returned to attractive levels, with improved asset quality. The legal issues surrounding the Aqua City project have been resolved, alleviating investor concerns about NVL’s debt situation. Additionally, the impact of Typhoon Yagi has so far only been partially reflected in the Q3 financial results, creating a misaligned expectation among investors.

Viettel stocks, including VTP (+6.9%), CTR (+2.7%), VGI (+7.1%) and VTK (+5.5%), were outstanding performers today. VTP has gained 59% since October 4 amid expectations that it will launch a logistics park in Lang Son at the beginning of December 2024, aiming to promote the development of cross-border e-commerce and smart border gates. Moreover, at the 5G ORAN Vietnam Connect 2024 event, Viettel announced the large-scale commercial deployment of 5G Open RAN base stations that are “Make in Vietnam, Made by Viettel.”

Foreign investors net sold today VND2.3tn (USD90.5mn), focusing on VHM (VND622.2bn, USD24.5mn), FPT (VND189bn, USD7.4mn), and MWG (VND144.6bn, USD5.7mn). In contrast, buying momentum was on FPT (VND217.6bn, USD8.6mn), TCB (VND101.1bn, USD4.0mn), and VPB (VND95.8bn, USD3.8mn).

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