Vietnam Daily Market Recap July 21 – DDV Earnings

Stocks decline, led by real estate

The VN-Index opened higher on Monday, surging through the 1,500 level, but quickly declined to the negative territory, closing down 0.8% at 1,485.1. Market liquidity declined compared to the last session, with total trading value dipping 3.7% to VND35.9tn (USD1.3bn). The HNX Index followed a similar pattern, declining 0.8% to close at 245.8.

Most sectors decreased today, with Real Estate (-3.5%), Telecommunications (-1.9%) and Oil & Gas (-1.4%) declining. In contrast, Travel & Leisure (+4.7%), Basic Resources (+1.1%) and Utilities (+0.7%) led gainers.

Top laggards included VIC (-5.9%), VHM (-4.2%) and TCB (-2.2%), while top performers today included VPB (+4.5%), HVN (+6.9%) and LPB (+2.6%).

Real Estate (-3.5%) plunged today, as the Ministry of Finance proposed a new tiered tax system for property sales based on holding periods to counter tax evasion and market speculation. Under this plan, selling a property owned for less than two years would incur a 10% tax on the sale price, with acquisition fees deducted from that amount. While this aims to curb speculative “surfing,” it will likely weaken developer presales as the demand from short-term investors, crucial for new projects, is expected to fall sharply.

HVN (+6.9%) reached its ceiling price today, as Vietnam Airlines (HVN) will finalize its list of shareholders on July 22 to offer a rights issue at a price of VND10,000 per share. The national carrier plans to issue ~900 million new shares, aiming to raise a maximum of VND9.0tn (USD346mn). The proceeds from this issuance are designated for paying down debt to suppliers and banks to strengthen the company’s financial position.

Foreign investors net bought today with VND175bn (USD6.7mn). Buying momentum focused on VPB (VND221bn, USD8.5mn), marking the 12th consecutive session of foreigners net buying the stock. They also net bought VIC (VND74.5bn, USD2.9mn) and SSI (VND68.5bn, USD2.6mn). On the other hand, top net sold stocks were VCB (VND147bn, USD5.7mn), FPT (VND143bn, USD5.5mn) and VIX (VND86.1bn, USD3.3mn).

Read the full report: HERE