Vietnam Daily Market Recap August 20, 2024 – CTG & Economic Update

Market Commentary: Stocks extend winning streak, led by real estate

The VN-Index followed global equity markets higher today as the US dollar DXY index fell below 102 to a seven-month low on continuing expectations of US rate cuts. The Vietnam index enjoyed solid gains from the opening bell, closing up 0.9%, or 10.9 points, to reach 1,272.6. The index has jumped 7.1% since August 5. The HNX rose 0.6%, or 1.3 points, to 237.3 today.

Strong buying pressure pushed liquidity up toward the end of the session. Foreign investors also contributed to the buying side, and net bought VND234bn (USD9mn) in today’s session.

Real Estate (+1.8%) was the top performing sector today (see our analyst note), led by DXG (+6.9%), PDR (+6.8%) and NVL (+5.0%).

Banks (+1.1%) and Financial Services (+1.1%) also enjoyed solid gains, in which VCB (+2.3%), CTG (+1.7%), and VND (+4.0%) were all among the stocks most net bought by foreign investors today with a total transaction value of VND250bn (USD10mn).

On the contrary, Food & Beverage (-0.03%) and Utilities (-0.3%) fell, led by VNM (-0.5%) and MSN (-0.3%).

Since mid-July, VNM has jumped by more than 16%, reaching its highest level in the past year. Since the beginning of July, foreign investors have net bought about 33 million VNM shares, equivalent to a value of nearly VND2.4tn (USD96mn). We believe that foreign investors have shown interest in VNM because of its positive business results, with 2Q24 revenue growing by 10% YoY to VND16.6tn (USD666mn) and gross profit margin improving by 2.0% pts YoY to 42.4%.

HPG (-0.2%) fell slightly today amid an anti-dumping investigation of hot-rolled coil originating or exported from Vietnam by India’s Directorate General of Trade Remedies (DGTR). However, HPG’s steel exports to India account for only 2.0% of its total, so we believe that the aforementioned event will have little impact on the business.

Read our full report: HERE