Vietnam Daily Market Recap October 4, 2024 – FPT Analyst note, STB Initiation, Market strategy.

Market commentary: Stocks extend slump, led by banks, real estate

The VN-Index on Friday continued its downward trend from yesterday, closing down 0.6% at 1,278.1. Total trading value shrank by 43% DoD to VND12.7tn (USD513mn). The HNX-Index also fell 0.3% to close at 232.7.

For the week, the VN-Index lost 1.6% (-19.6 points) due to concerns over escalating geopolitical tensions in the Middle East. Average daily trading value slightly dropped 4.2% (VND0.8tn/USD32.6mn) from the previous week.

Almost all sectors fell today, led by Banks (-0.8%), Real Estate (-0.6%) and Retail (-0.5%). On the other hand, Utilities (+0.2%), Telecommunication (+0.9%) and Oil & Gas (+1.0%) positively impacted the index.

The Oil & Gas sector was the main support for the market today, led by GAS (+1.1%), PLX (+1.6%), PVS (+1.7%) and PVD (+1.6%). Global oil prices have continued to surge on fears that Israel could strike Iran’s oil industry in retaliation for Tehran’s ballistic missile attack this week.

The Financial Services sector slumped 0.7% today, including SSI (-0.9%), VND (-1.0%) and VCI (-0.8%). VSDC announced that a total of 158,302 new domestic securities accounts were opened in Vietnam in September, the lowest number of new accounts opened since March 2024, and it is only half of the number of new accounts opened in August. The growth in the number of securities accounts has slowed as the market continues to struggle with the psychological resistance level of 1,300. Multiple failures to break through this level have somewhat impacted investor sentiment. Additionally, geopolitical uncertainties in various regions worldwide have also contributed to investor concerns.

Foreign investors net sold today with (VND572.4bn, USD23.1mn). Selling momentum focused on VHM (VND230.6bn, USD9.3mn), VRE (VND62bn, USD2.5mn) and VNM (VND54.4bn, USD2.2mn), while foreigners mainly bought TCB (VND33.9bn, USD1.4mn), TPB (VND32.8bn, USD1.3mn), and VCI (VND25.7bn, USD1mn).

The top gainers of the day were GAS (+1.1%), PLX (+1.6%), and HAG (+6.2%), while the biggest laggards included VNM (-2.6%), CTG (-1.7%), and GVR (-1.8%).

Read the full report: HERE.