Vietnam Daily Market Recap October 31, 2024 – VRE, VIB, DGW, POW, PVD, PC1, KDH, KBC, TCM, PVT, CTD, MSH, SAB, GAS, DPM & CTG Earnings Flashes

Market commentary: Stocks advance, led by banks

The VN-Index bounced between positive and negative territory on Thursday before closing up 0.5% at 1,264.5. Total trading value increased 42.2% compared to Wednesday to VND18.1tn (USD716.1mn), largely due to MSN (discussed below). The HN-Index also rose 0.2% to 226.4.

Banks (+0.9%) were the stellar performers today, led by CTG (+2.7%), VCB (+2.1%), STB (+1.1%), ACB (+1.2%), LPB (+1.2%) and VPB (+1.0%). Most banks recorded positive results in 3Q24, including STB, CTG and VCB.

Other market drivers included Real Estate (+0.5%), Financial Services (+0.6%), Chemicals (+0.6%), and Retail (+0.5%). In contrast, market laggards were Food & Beverage (-0.5%), Industrial Goods & Services (-0.4%), Utilities (-0.4%), Telecommunications (-1.1%), Basic Resources (-0.1%) and Construction & Materials (-0.3%).

Although Real Estate increased, DPG (-3.2%) continued its sharp decline after announcing negative revenue and net profit growth in 3Q24. Over the last three trading sessions, DPG has dropped by more than 10%, despite the index increasing by 0.8%. This is attributed to the underperformance of its revenue and gross profit margin in the infrastructure construction segment YoY, despite the Government’s increased focus on public investment. Revenue of the construction and installation segment decreased 16.3% YoY to VND672bn (USD26.6mn), with a 2% pts decline YoY in gross profit margin to 8.5%.

MSN (-1.9%) dominated foreign trading today. According to media reports, SK Investment Vina I Pte Ltd, a member fund of SK Group, offered about 63 million shares or a 4.4% stake in the company in a secondary placement. VND6.0tn (USD237.2mn) of the shares were sold. Foreign investors acquired VND4.7tn (USD185.8mn) of them, resulting in net foreign selling of VND1.3tn (USD51.4mn).

Read the full report: HERE