Daily Market Recap Apr 25 – TCM Re-initiation; VHM AGM notes

Market commentary: Market takes breather after recent volatility

The VN-Index bobbed between positive and negative territory both in the morning and afternoon sessions before closing down slightly 0.1% (-0.64 points). Trading value reached about VND12,150bn, 27.6% lower than yesterday’s session (VND16,800bn) and 29.3% lower than the average of the last five sessions (VND17,196bn). Foreign investors had a net selling session of VND466bn (US$19mn), the fourth consecutive day of net selling.

The VN-Index is up 6.8% ytd, while some markets in Asia have fallen so far this year, including Korea (-2.4% ytd), Hong Kong (-4.8% ytd), Indonesia (-2.42% ytd), Thailand (-5.9% ytd) and Singapore (-1.97% ytd).

This week, the SBV continued to regulate liquidity on the interbank market through the OMO channel and by issuing T-bills. The SBV net injected liquidity today, with the bidding interest rate on OMO increasing as the loan term has increased from seven days to 14 days. We believe this policy is meant to establish a higher interbank rate level, thereby indirectly supporting the VND.

Banks (-0.37%) fell, led by BID (-0.8%) after it increased deposit interest rates today for the first time in more than a year by 0.2% pts for terms one to 11 months, while other terms remain unchanged. Recently, CTG (+0.15%) also increased interest rates by 0.2% pts, but reduced deposit interest rates by 0.1% pts yesterday.

FPT (+2.58%) jumped to its all-time peak, and contributed the most to the index’s gain today after news that it will cooperate with NVIDIA to build an AI facility in Vietnam.

MWG (+2.87%) was the biggest net purchase by foreign investors today (VND210bn), contributing 0.6 points to the index’s increase. MWG has doubled since the beginning of 2023.

SAB (+1.49%) rose after management said at its AGM that it targets revenue and NPAT growth of 13% and 8%, respectively, in 2024.

The KRX system is expected to officially operate from May 2. Securities companies are checking their connection to the Ho Chi Minh City Stock Exchange (HOSE) and end-of-day data will be converted to the new system from tomorrow. KRX is expected to bring new products, trading and payment solutions to the Vietnamese stock market such as: day trading (T+0), short selling, shortened settlement time and option contracts. This also may solve bottlenecks toward upgrading the market from frontier to emerging through central clearing and improving infrastructure quality.

Read the full report: HERE