Vietnam Daily Market Recap October 15, 2024 – TPB & HDB Updates

Daily commentary – October 15, 2024: Stocks drop, led by real estate, O&G

The VN-Index on Tuesday again enjoyed gains in the morning session only to see sellers step in in the afternoon, dragging the index to close down 0.4%, or 5.3 points, at 1,281.1, after reaching an intraday high of 1,293.8. The HNX-Index took a bigger hit, dipping 0.8% to 229.0.

The session started on a positive note, buoyed by gains in banking stocks. BID rose 3% while CTG rose 2% right after the opening bell after being outperformed by smaller banks in recent weeks. However, this optimism proved short-lived and failed to spread to other sectors. Market breadth remained narrow. Despite the headline index’s initial rise, a significant portion of the market actually experienced losses, particularly in the Property and O&G sectors. Vingroup stocks, which have been the backbone of the VN-Index in recent trading sessions, also tumbled under pressure, led by VHM (-1.5%), VIC (-1.2%) and VRE (-1.8%).

The Property sector led sell-off, as today is the deadline of the Ministry of Construction to report on DIG violations in equitization and divestment of state capital. The stock fell 5% right from the beginning of the session. This, coupled with a recent report on inspection at TCH, triggered a broad sell-off in the troubled property sector, led by PDR (-3.8%), TCH (-2.4%) and NLG (-1.8%).

O&G stocks also declined today, led by PLX (-3.6%), BSR (-3.4%) and PVS (-2.5%), amid sliding oil prices as OPEC lowered its outlook for global oil demand growth in 2024 and 2025 and concerns over the impact of escalating conflict between Israel and Iran.

Selling intensified in the afternoon, pushing the market below its reference level. BID, VPB and consumer bluechip MWG and MSN were the few pillars that provided some support, adding 1.6 pts to the main index. On the other hand, VHM (-1.5%), GVR (-1.5%) and PLX (-3.6%) were top laggards, weighing heavily on the market, together taking away 1.8 pts.

Investor aspirations for a strong rally that would propel the VN-Index decisively over the 1,300-point mark have been dashed for now. After hovering slightly below the 1,300 level, the market reverted and lost ground, with the past two sessions losing 1.2% from its recent peak. This downturn throws a bucket of cold water on investor optimism for an immediate breakout and a strong bull run after the recent surge of bank stocks.

Read the full report: HERE