Vietnam Daily Market Recap Nov 11 -Fixed income report

Stocks fall, led by tech

The VN-Index opened lower on Monday and traded in negative territory throughout the session. The index briefly rebounded at the beginning of the afternoon session but lost momentum toward the close, closing down 1.2% to 1,580.5. Market liquidity declined, with total trading value dropping 19.7% compared to Friday to VND17.1tn (USD634.7mn). The HNX Index followed a similar pattern, posting a loss of 0.7% to close at 258.2.

Market sentiment has been under pressure from rising interbank, bond, and deposit rates recently amid accelerating credit and public investment demand at year-end. In the interbank market, the State Bank of Vietnam net injected USD187mn today, lifting OMO outstanding to a fresh high of USD10.1bn, yet overnight interbank rates remained at 6%. Investors are worried that commercial banks, including State-owned banks, may hike deposit rates if liquidity tightness persists.

Most sectors declined, led by Technology (-4.0%), Industrial Goods & Services (-2.6%), Real Estate (-1.9%), and Oil & Gas (-1.3%). In contrast, Basic Resources (+0.4%), Insurance (+0.5%), Food & Beverage (+0.2%), and Telecommunications (+0.1%) gained.

Top laggards included VHM (-5.6%), FPT (-4.8%) and CTG (-2.0%). Top performers today included HPG (+1.5%) and TCB (+1.2%).

Foreign investors net sold today with a total value of VND319.5bn (USD12.1mn). Selling pressure was concentrated in HDB (VND118.2bn, USD4.5mn), VRE (VND82.1bn, USD3.1mn) and KDH (VND81.2bn, USD3.1mn). On the other hand, top net buying was seen in HPG (VND405.0bn, USD15.4mn), VIX (VND73.3bn, USD2.8mn) and MWG (VND70.6bn, USD2.7mn).

Read the full report: HERE