Vietnam Daily Market Recap October 7, 2024 – PC1 Update, POW Analyst note

Market commentary: Financial Services shines on a flat day

The VN-Index opened strongly this morning, rising 0.6% in the first hour of trading reflecting solid macro news over the weekend from both Vietnam and the United States (see our Macro Notes). However, enthusiasm quickly waned and the index fell back throughout the day to close roughly flat, down 0.05% at 1269.9. Total trading value shrank by 13.8% to VND11.8tn (USD477.7mn) from last week. The HNX-Index also closed down to 232.4.

Financial services was the standout sector, adding 1.2% to the VN-Index. It picked up positive momentum today due to market anticipation of Rusell’s announcement of Vietnam’s stock market’s upgrade to an Emerging market after the pre-funding bottleneck was resolved, Russell is expected to make the announcement on October 8th’s press release. VCI (+3.7%) and HCM (+2.1%) led the financial services sector today following the release of 3Q24 securities companies’ market share, of which both companies gained a significant portion, now standing at 6.7% and 6.6%, respectively.

Gains in financial services were offset though by F&B (-0.7%). Blue-chips VNM (-2.0%), MSN (-1.1%) and HAG (-2.7%) all dragged the sector down.

POW (-1.5%) declined despite news that it completed its Power Purchase Agreement with EVN for Nhon Trach 3 & 4 (See our Analyst Note).

STB (+2.1%) and TCB (+0.4%) were among the top performers today, offsetting the fall of other companies in the Banking sector.

Foreign investors net sold today with (VND337.7bn, USD13.6mn). Selling momentum focused on VPB (VND93bn, USD3.7mn), HDB (VND87bn, USD3.5mn), and SHS (VND56bn, USD2.2mn), while foreigners mainly bought STB (VND60bn, USD2.4mn), TCB (VND43bn, USD1.7mn), and MWG (VND33bn, USD1.3mn).

The top gainers of the day were STB (+2.1%), HPG (+0.7%), and CTG (+0.5%), while the biggest laggards included VNM (-2.0%), VCB (-0.3%), and HDB (-0.1%).

Read the full report: HERE.