Vietnam Daily Market Recap July 18, 2024 -SCS, NT2, FPT, SZC Earnings Flashes

Market Commentary: Afternoon sell-off drags market lower

The VN-Index drifted lower in the afternoon on Thursday and appeared headed for a loss of around 1% when, in a reversal of yesterday’s trading action, the index rallied nearly 20 points in the final hour to close up 0.5%, or 5.78 points, to 1,274.44. Foreign investors continued to net buy as the DXY fell to 103.8 points. The HNX-Index also rose by 0.7% to 242.49.

Most sectors gained today, except Healthcare (-2.5%), Technology (-2.5%), Industrial Goods & Services (-2.1%), and Travel & Leisure (-1.5%). Oil & Gas was the best performing sector today, led by BSR (+0.4%), PLX (+5.6%), and PVS (+2.2%).

PLX rose 5.6% after declining yesterday. The shares are up 43% since April 19 after the company reported stronger than expected Q1 earnings. As we reported in our Q1 Update Report, PLX has likely benefited from the new Petroleum Business Decree, which increases its gross margin through a new mechanism for determining its retail prices. GM will also benefit from higher fixed trading costs (ranging from 5 – 20% for each of the various products) and profits from July 2024.

Retail was another top performing sector, led by MWG (+2.4%) and DGW (+2.3%), with MWG one of the index’s top movers today.

CNG (+6.9%) hit its ceiling price today after it announced impressive 2Q24 results with profit-before-tax spiking by 220% YoY to VND55.3bn (USD2.2mn). In 2Q24, the company recorded gas output reaching 61.9 million Sm3, exceeding by 11% their second quarter plan.

HBC (+6.6%) surged today after recording record-high earnings in 2Q24 thanks to financial income doubling to VND46bn (USD1.8mn). The company also recorded a reversal of provision amounting to VND220bn (USD8.7mn) for SG&A expenses while other income jumped 64.3% to VND515bn (USD20.4mn). Consequently, in 2Q24, HBC saw a net profit of VND684bn (USD27mn), significantly improving from a loss of VND268bn in 2Q23.

After a streak of three straight sessions of foreign net selling yesterday, foreigners net bought again today, for a total value of VND974bn (USD38.6mn), focusing on HDB (VND495bn, USD19.6mn), STB (VND345bn, USD13.7mnn) and ACV (VND185bn, USD7.3mn). On the contrary, FPT (VND352bn, USD14mn), MSN (VND122.5bn, USD4.8mn) and PVI (VND79.5bn, USD3.1mn) were the top stocks net sold.

Other top performers today included PLX (+5.6%), CTG (+1.4%) and BID (+1%). Conversely, top laggards included FPT (-3.0%), HVN (-3.4%) and SHB (-0.9%). As we mentioned yesterday, FPT is one of the stocks likely to be most heavily sold by ETFs based on adjustments to indices following the HOSE’s recent review.

Read our full report: HERE