Vietnam Daily Market Recap June 28, 2024 – BID Initiation & PHR AGM note

Market Commentary: First half closes on down note, but enjoys strong overall gains

The VN-Index traded little changed in the morning session on Friday, but fell sharply in the afternoon to close down 1.1%, or 13.77 points, to 1,245.32, while liquidity rose 37% compared to yesterday to VND16.9tn (USD704mn). The HNX-Index followed the same trend and fell 1%, closing at 237.59. For the whole week, the VN-index stumbled 2.86% (-36.7 points), as average trading value fell 12% WoW to VND17.6tn (USD733mn). We believe the selling pressure today and this week resulted from this being the last financial day in 1H24 and investors and funds closed their books.

Market laggards, consisting of GVR (-5%), BID (-1.9%), HPG (-1.9%), FPT (-1.3%) and VPB (-1.8%), accounted for a combined 5.3 points of the VN-Index’s loss today.

For 1H24, VN-Index performed well with a gain of 10.2% YTD while the index gained 12.2% in the whole 2023. The VN-Index outperformed India (+8.1% YTD), Singapore (+2% YTD), Malaysia (+9% YTD), Indonesia (-4.8% YTD), Thailand (-7.8% YTD) and the Philippines (-4.5% YTD). Japan (+15.6% YTD), Taiwan (+29.7% YTD) and the S&P 500 (+14.6% YTD) outperformed the VN-Index, thanks to the wave of investment in technology stocks. Average daily trading value was VND19.4tn (USD808mn) in 1H24, compared to VND16.6tn (USD692mn) in 2H23.

Foreign investors have net sold VND50tn (USD2bn) on HOSE from the beginning of the year (compared to the record high of VND58tn in 2021) and have recently not shown signs of pausing. All emerging and frontier markets in Asia have seen strong foreign net outflows in 1H24 due to the strong US dollar. Selling pressure in Vietnam focused on VHM (VND12tn, USD500mn), FUEVFVND (VND7.2tn, USD300mn), VNM (VND5.6tn, USD233bn) and FPT (VND5.1tn, USD213mn). Foreigners net bought MWG (VND2tn, USD83mn), NLG (VND810bn, USD33mn) and MSB (VND700bn, USD29mn).

Industrial goods and services (+101% YTD), Technology (+46.2% YTD) and Chemicals (+43.8% YTD) were among the best performing sectors in 1H24, led by ACV (+84.8% YTD), FPT (+57.2% YTD), GVR (+61.3% YTD) and DGC (+30% YTD).

Read our full report: HERE