Vietnam Daily Market Recap December 19 2024 – TPB Update, Economic Update

Stocks slide following Fed’s more hawkish outlook

Equity markets around the world plunged today on news from the US Fed that it is likely to cut rates just two times in 2025 vs the four cuts that most investors had expected (See our Macro Note). The S&P 500 fell 2.9% on the news while Asian markets in South Korea, Indonesia and Thailand fell 1.9/1.8/1.7%, respectively.

The VN-Index fell sharply at the open but then stabilized for most of the day and closed down 0.9% at 1,254.6. Trading value soared 39.5% from yesterday’s session to VND17.7tn (USD698.5mn). The HNX-Index also plunged at the open but rallied in the afternoon to eke out a 0.1% gain to close at 227.5. 

Almost all sectors were in the red today, with Banks (-1.1%), Real Estate (-1.1%), and Food & Beverage (-1.6%) dragging the index into negative territory. Other sectors that fell included Industrial Goods and Services (-0.2%), Financial services (-0.8%), Chemicals (-0.8%), Basic materials (-1.3%), and Retail (-0.5%). On the other hand, Telecommunications (+2.5%), Insurance (+0.3%), and Healthcare (+0.1%) closed in the green.

CSV (+2.3%) gained today due to recent increasing domestic demand for caustic soda amid strong industrial production growth, with Vietnam’s industrial production index (IIP) having gone up 8.4% YTD in 2024. As the leading domestic producer, CSV benefits from competitive advantages such as lower electricity costs and proximity to major industrial consumers in the Southeast region. Additionally, the company is expanding its production capacity through a new VND2tn (USD78.5mn) factory project and diversifying into premium chemical products, supporting future growth. CSV has surged 161% so far this year.

DHT (+7.0%) hit its ceiling price to lead the healthcare sector following news of Aska Pharmaceutical Co. Ltd.’s acquisition of over 2.1 million shares, with a total value of ~VND216bn (USD8.4mn), increasing its ownership stake from 35.6% to 38.2%, which secures veto rights in shareholder decisions. 

Top performers today included KDH (+1.7%), REE (+6.3%), SAM (+6.8%), and CMG (+1.6%). Meanwhile, top laggards were VCB (-0.7%), HPG (-1.8%), TCB (-1.8%) and VHM (-1.7%).

Foreign investors net sold today, with a net outflow of VND480bn (USD18.8mn). Selling momentum was concentrated on SSI (VND121.2bn, USD4.7mn), VPB (VND89.1bn, USD3.5mn), VCB (VND71.1bn, USD2.8mn), and PDR  (VND71.1bn, USD2.4mn), while buying momentum focused on FPT (VND109.3bn, USD4.2mn), KDH (VND47.7bn, USD1.8mn), and DGC (VND26.2bn, USD1.0mn).

Read the full report: HERE