Vietnam Daily Market Recap October 3, 2024 – FPT, SSI Update & ETF Report

Stocks bounce off 1,300 amid property rout

The VN-Index opened higher on Thursday and once again tested the 1,300 resistance level, peaking at 1,299.1 before retreating to close down 0.7% at 1,278.1. Total trading value rose 32% DoD to VND23.3tn (USD941mn). The HNX-Index also fell 0.7% to close at 233.4.

All sectors fell today, led by Property (-2.1%), Chemicals (-1.5%), Retail (-1.2%), and Oil & Gas (-1.2%).

The Property sector was hurt by news of inspections of seven DXG projects in Quang Binh Province by the Ministry of Natural Resources and Environment. Additionally, news that Novaland and Bitexco are involved in the lawsuit of Van Thinh Phat has also negatively impacted market sentiment. Meanwhile, 3Q business results of residential property developers are also forecast to slump as most companies will have their main revenue recognition period in the fourth quarter this year, further dampening market sentiment. Property sector stocks were among the market’s biggest laggards, including VHM (-4.2%), DXG (-3.5%) and KDH (-3.1%).

OCB (+7.0%) hit its ceiling price and was the strongest-performing stock in the banking sector today. OCB shares have underperformed the banking sector YTD and currently trade at just a 0.9x P/B, lower than the industry average of 1.6x. We believe that the current price reflects recent difficulties but does not account for our forecast that ROAE will bottom out at 12.0% in 2024 (-0.3% pts YoY) before recovering in 2025/26 to 13.5%/14.9%. We have just initiated an ADD rating for OCB; for details, please refer to the OCB initiation report.

Foreign investors net bought today with (VND479.4bn, USD19.4mn), 97% higher than yesterday’s total. Buying momentum focused on FUEVFVND (VND471.5bn, USD19mn), STB (VND141bn, USD5.7mn), VHM (VND117.9bn, USD4.8mn), while foreigners mainly sold OCB (VND58.4bn, USD2.4mn), FPT (VND56.3bn, USD2.3mn), and SHS (VND49.1bn, USD2mn).

The top gainers of the day were VPB (+1.5%), OCB (+6.7%), and CTG (+0.6%), while the biggest laggards included VHM, TCB (-2.2%), and VIC (-1.7%).

Read the full report: HERE.