Vietnam Daily Market Recap September 23, 2024

Market commentary: Stocks slide, led by banks, real estate

The VN-Index popped higher at the open on Monday but quickly lost positive momentum and closed in the red, down 0.3%, or 3.6 points, to 1,268.5. Similarly, the HNX-Index followed a downward trend, slipping 0.4% to 233.4.

Sectors with large market capitalizations, such as Banking (-0.2%), Real Estate (-0.4%), and Industrial Goods & Services (-0.6%), led the market lower. Insurance (+0.9%) was the best-performing sector today, led by BVH (+1.6%), PRE (+1.1%), and AIC (+1.8%). The Construction and Materials (+0.4%) sector also posted solid gains, particularly BMP (+4.3%) and SJG (+10.9%).

The strong performance of BMP (+4.3%) can be attributed to plunging PVC resin prices, a key input material for the company’s production processes. This drop in input costs is expected to boost BMP’s gross profit margin, driving investor optimism.

Additionally, QNS (+2.5%) benefited from stricter measures against sugar smuggling and the enforcement of anti-dumping tariffs on sugar imported from Thailand. These protective measures, combined with a surge in global sugar prices, (+35% YTD in September) have positively impacted the company’s stock performance.

NTL (+3.3%) also advanced after announcing a post-audit net profit increase of VND250bn (USD10.2mn) to reach nearly VND652bn (USD26.5mn, 233x YoY).

In contrast, MWG (-1.0%) saw a decline following news that a member of the BOD sold one million shares, following the company’s chairman selling three million shares from June until now to reduce his ownership from 2.4 to 2.2%.

The top gainers of the day were STK (+6.9%), SVD (+6.9%), and NAF (+6.8%), while the biggest laggards included SMC (-6.9%), AGM (-6.9%), and ITA (-6.9%).

Read the full report: HERE