Vietnam Daily Market Recap September 18, 2024 – CTD Analyst Note, PHR Update, ETF Report & Economic Report

Market commentary: New circular on pre-funding drives rally for second day

The VN-Index opened higher on Tuesday and extended yesterday’s 1.6% gain, closing up 0.5%, or 6.0 points, at 1,264.90 following the release of Circular 68/2024/TT-BTC, which allows foreign investors to purchase stocks without upfront prefunding capital (See our Macro Note). The HNX Index also increased by 0.3% to 232.95.

Stocks that gained in yesterday’s session continued to perform well today. The Telecommunications sector (+7.7%) gained the most today, followed by Travel (+1.9%) and Media (+1.5%), led by VGI (+9.8%), HVN (+4.8%) and VEF (+2.8%).

Nearly every sector gained today except Basic Resources (-0.4%), Real Estate (-0.2%), Chemicals (-0.2%) and Insurance (-0.1%).

Stocks in the financial services sector (+1.4%) continued to see strong gains, including SSI (+2.1%), HCM (+4.0%), MBS (+2.6%), and VND (+1.0%). They would likely benefit the most from the new circular and the increased likelihood of an upgrade of Vietnam’s stock market to emerging market status.

In the banking sector (+0.6%), CTG (+2.2%) stood out as the top performer today, followed by VCB (+0.6%), BID (+0.7%), and TCB (+1.1%). This sector was bolstered by the SBV’s announcement of a reduction in lending interest rates for secured loans (OMO).

CTR (+7.0%) hit its ceiling price following its decision to distribute cash dividends. With a payout ratio of 27.2% and nearly 114.4 million shares outstanding, CTR is estimated to distribute over VND311bn (USD13mn) in dividends to shareholders. The payment date is expected to be October 18, 2024.

Foreign investors had their third consecutive net buying session with a net trading value of VND312bn (USD13mn) focused on SSI (VND137bn, USD5.6mn), FUESSVFL (VND115bn, USD4.7mn) and FPT (VND105bn, USD4.3mn). On the contrary, HPG (VND87bn, USD3.5mn), KDH (VND66bn, USD2.7mn) and VPB (VND62bn, USD2.5mn) were mainly sold.

Other top performers today included FPT (+1.3%), HVN (+4.8%), MWG (+2.1%). Conversely, top laggards included HPG (-0.6%), VIC (-0.6%), VRE (-1.3%), SAB (-0.7%) and VHM (-0.2%).

Read the full report: HERE