Vietnam Daily Market Recap August 28, 2024

Market Commentary: Stocks little changed; rubber sector outperforms

The VN-Index was little changed for a second day, closing with a slight gain of 0.1%, or 0.88 points, at 1,281.44 although once again, there were more tickers declining (225) than increasing (168). Meanwhile, the HNX Index decreased by 0.3%, finishing at 238.23.

Telecommunications (+2.0%), Chemicals (+1.2%), and Technology (+0.6%) were the best performing sectors today, led by VGI (+2.0%), GVR (+2.0%), and FPT (+0.6%). On the contrary, Real estate (-1.0%), Insurance (-0.6%), and Autos & Parts (-0.5%) were the sectors that declined the most, led by VHM (-1.2%), BVH (-0.9%), and VEA (-0.0%).

Rubber sector stocks outperformed the VN-Index today, with strong gains in GVR, DPR (+3.4%), and PHR (+2.7%). Investors are eyeing the recent strong rise in global rubber prices as support for profit growth for stocks in this sector.

DIG (-4.0%) had a poor trading session following the Government Inspectorate’s announcement of an inspection report related to state-owned enterprise equitization and divestment. According to the Government Inspectorate, during the process of equitization and divestment of the company, there were limitations, deficiencies, and violations such as a failure to follow the prescribed procedures for equitization and an incorrect valuation of assets due to miscalculations in investment costs for construction on land, resulting in asset values being assessed too low.

Foreign investors net sold today with a net trading value of VND113bn (USD4.5mn), focusing on HPG (VND187bn, USD7.5mn), HSG (VND74bn, USD3.0mn) and VHM (VND52bn, USD2.1mn). On the contrary, FPT (VND139bn, USD5.6mn), VNM (VND66bn, USD2.7mn) and SSI (VND49bn, USD2.0mn) were mainly bought.

Other top performers today included TCB (+1.6%), MBB (+1.0%), FPT (+0.6%) and HVN (+2.4%). Conversely, top laggards included VIC (-1.6%), VCB (-0.4%), VHM (-1.2%), VRE (-2.7%) and BCM (-1.0%).

Read the full report: HERE