Vietnam Daily Market Recap August 14 – NKG Note, GMD Update

Stocks surge to new high, led by banks

The VN-Index opened higher on Thursday, remained in positive territory throughout the session thanks to strong momentum in bank stocks, and closed up 1.8% at 1,640.7, a fresh all-time high. Market liquidity dipped, with total trading value decreasing 6.1% DoD to VND52.5tn (USD2.0bn). The HNX Index followed a similar pattern, climbing 2.0% to close at 285.2.
Sector performance was mixed, led by Insurance (+4.1%), Banks (+3.9%), Travel & Leisure (+1.5%) and Financial Services (+2.1%). In contrast, Telecommunications (-1.4%), Chemicals (-1.3%) and Industrial Good & Services (-0.9%) declined.
VPB (+6.9%), MBB (+7.0%), HDB (+6.9%) and VCB (+4.3%) surged today, following news that the State Bank of Vietnam (SBV) issued a new circular regarding the required reserve ratio. This new regulation provides a significant benefit for banks that are participating in the restructuring of weaker credit institutions. Specifically, these banks will receive a 50% reduction in their required reserve ratio for a five-year period. The move is intended to support the successful restructuring of these weaker banks and will enhance the liquidity of the involved financial institutions.
HDB (+6.9%) also announced it is seeking shareholder approval for several significant plans. These include moving its head office to the Saigon Marina International Financial Center Tower, while increasing its foreign ownership limit to 27% from 17.5%, and selling over 15 million treasury shares. The bank also intends to issue nearly 350 million new shares to convert outstanding bonds, aiming to raise its charter capital by almost 10%.
Top performers today included VCB (+4.3%), VPB (+6.9%) and MBB (+7.0%), while top laggards included FPT (-1.2%), GVR (-1.7%) and MSN (-1.3%).
Foreign investors net sold today with a total value of VND1.5tn (USD57.5mn). Selling pressure was focused on HPG (VND424tn, USD16.3mn), FPT (VND375bn, USD14.4mn) and SSI (VND293bn, USD11.3mn). On the other hand, top net buying was seen in VJC (VND224bn, USD8.6mn), VPB (VND86.5bn, USD3.3mn) and VIX (VND67.9bn, USD2.6mn).

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