Vietnam Daily Market Recap September 25, 2024 – Analyst Note DCM&FPT, VFS US Earnings Flash

Market commentary: Stocks hit 11-week high, led by banks, financial services

The VN-Index popped at the open on Wednesday and jumped higher throughout the morning session. In the afternoon, the day’s gains were consolidated as the index closed up 0.8%, or 10.5 points, at 1,287.5 amid a surge in liquidity to VND20.5tn (USD837mn), nearly double that of yesterday. Wednesday’s close was the highest since July 9. The HNX also increased 0.7%, or 1.52 points, to 235.8.

Top performing sectors included Financial Services (+2.4%), Banking (+1.3%), Real Estate (+0.5%), Basic Resources (+1.3%) and Retail (+0.6%). On the other hand, Food & Beverage (-1.7%), Telecommunication (-0.7%) and Construction & Materials (-0.2%) were the three main sectors that negatively impacted the index.

The Basic Resources sector jumped on news that the People’s Bank of China (PBOC) announced a monetary stimulus package to prevent a further decline of the housing market, which pushed futures prices for steel rebar to above 3,130 CNY/ton, near a three-week high.

Every stock in the Financial Services sector rose today, including SSI (+3.2%), VCI (+3.2%), VIX (+5.3%) and MBS (+5.8%). The sector’s recent gains have been supported by several factors: 1) Transaction value was strong today – following the acceleration in yesterday’s afternoon session -, reaching VND23tn (USD926mn) across the three bourses. This trading value was 35% higher than the average daily liquidity in July and August, providing positive momentum for the brokerage segment; 2) Foreign capital flows have started to return to the market; and 3) There are expectations that securities companies will be able to serve more institutional clients thanks to non-prefunding regulatory developments.

VCB (+1.8%) led gains in the banking sector and made the largest contribution to the market’s rise. Today, the National Assembly Standing Committee agreed on a plan to supplement state capital for VCB through the issuance of stock dividends from its remaining profits. Specifically, VCB plans to increase its charter capital using its remaining accumulated profits up to the end of 2018 and remaining profits from 2021, totaling VND27.7tn (USD1.1bn), with state shareholders’ additional capital amounting to VND20.7tn (USD842mn).

Foreign investors net bought today with VND525bn (USD21.3mn). The buying momentum focused on VCI (VND90bn, USD3.7mn), MWG (VND84bn, USD3.4mn), and TCB (VND79bn, USD3.2mn). Foreigners net sold HPG (VND65bn, USD2.6mn), STB (VND61bn, USD2.5mn) and VNM (VND34, USD1.4mn).

The top gainers of the day were LDG (+6.9%), HDC (+6.8%), and EVF (+6.1%), while the biggest laggards included AGM (-6.9%), SVD (-5.8%), and MDG (-4.4%).

Read the full report: HERE