Vietnam – Daily Market Recap Nov 12

Dear Valued Clients,

We would like to send you our Daily Market Recap for today

Market Commentary: The VN-INDEX rose 7.1pts thanks to Real Estate and Financial large cap’s advances

The VN-INDEX gained 7.1pts to end at 959.3pts on the back of Financials and Real Estate large caps support. The VN-INDEX started in the green territory and managed to stay in the green throughout today’s session. Financials and Real Estate large caps were today’s movers, led by VCB (+1.8%), VIC (+0.9%), and VHM (+0.8%), contributed 3pts to the VN-INDEX. On the other hand, the Consumer Staples sector was underperformed today, led by MSN (-2.4%) and VNM (-0.5%). Airlines stocks corrected after a recent rally this week with HVN (-0.7%) and VJC (-1.0%). However, the selling pressure was minor compared to today’s movers as the VN-INDEX managed to stay positive, gaining 0.7% from the reference point. At the end of the session, the VN-INDEX closed at its intraday high of 959.3pts (+0.7%). The HNX-INDEX also edged up 2.0% to 144.6pts.

Consumer Discretionary (+1.9%), Financials (+1.3%), and IT (+1.2%) rose, while Energy (-0.4%), Consumer Staples (-0.4%), and Health Care (-0.0%) lost ground today. Top index movers included VCB (+1.8%), VIC (+1.0%), GVR (+4.0%), VHM (+0.8%), and CTG (+1.6%). Top index laggards consisted of MSN (-2.4%), VNM (-0.5%), VJC (-1.0%), PLX (-0.5%), and HVN (-0.7%). Top three major put-through transactions were HNG with 11.1m shares (VND121.5bn), MBB with 1.9m shares (VND35.7bn), and PDR with 0.9m shares (VND33.5bn).

Foreigners net sold on HOSE to the amount of VND126bn, and also net sold on HNX to the amount of VND12.7bn. They mainly bought VRE (VND62.8bn), VHM (VND59.9bn), and VIC (VND47.4bn); and mainly sold HPG (VND83.1bn), VNM (VND79.5bn), and VIC (VND49.6bn).

Market News

Oil near US$41 with IEA warning on outlook, OPEC+ edging to accord

Oil steadied as the International Energy Agency warned the coronavirus vaccine breakthrough won’t quickly revive markets. Futures fluctuated between gains and losses near US$41/barrel. The IEA cut its forecasts for global oil demand this quarter by 1.2m barrels a day as the pandemic continues to pressure consumption, most notably in Europe. (Bloomberg)

Favourable investment environment brings in FDI capital to Dong Nai province

Dong Nai has been among the leading localities in Vietnam in attracting foreign investment over recent years, with local authorities continuing to innovate and create a favourable investment environment. Dong Nai is now home to 32 operating industrial parks and more than 1,500 active FDI projects with a total investment capital of nearly US$31bn. Foreign-invested enterprises contribute an average of US$11bn to the province’s export turnover each year. To become a popular destination among investors, Dong Nai has constantly reformed its administrative procedures, fine-tuned its infrastructure, and trained high-quality human resources. Dong Nai will be home to the much-anticipated Long Thanh International Airport and associated traffic infrastructure within a few years. To put these advantages to best use, it will continue to strengthen reform efforts and create favourable conditions for manufacturing activities while opening more industrial parks and developing infrastructure. (Vietnamnet.vn)

Notable Corporate Events

Binh Thanh Import – Export Production & Trade JSC (GIL VN, HOSE) – Business results: GIL’s 9M20 net revenue and after-tax profit reached VND2,546bn (+34.4% yoy) and VND189,5bn (+45% yoy), respectively. GIL’s major partners are Amazon and Ikea, strong online businesses in recent years, helping GIL avoid the COVID-19 impact and upstream the textile industry. (Ndh.vn)

Should you have any question, please feel free to contact us.