Vietnam Daily Market Recap August 23, 2024 – PVD, REE Update & MSH Initiation

Market Commentary: Momentum slows at the end of a strong week

The VN-Index ended the week on a positive note, closing up 0.2%, or 2.54 points, to 1,285.32.  Breadth was not strong though. 172 VN-Index tickers rose while 272 declined. Total trading value was 7.9% higher than yesterday at VND16.8tn (USD700mn). The HNX-Index also rose 0.7%, closing at 240.07.

For the week, the VN-Index rose 2.6% (+33.09 points) and has risen 8.2% since August 5. But after gains of 0.8%, 0.9% and 0.9% on Monday, Tuesday and Wednesday, it ran out of steam a bit with a lower gain of 0.1% Thursday before recording today’s modest climb. The weekly average trading value was 19% higher than the previous week (VND17.8tn/USD742mn).

The Real estate sector (+0.1%) gained, led by BCM (+0.6%), NVL (+2.3%), PDR (+0.9%), DIG (+2.0%), IDC (+1.5%), PDR (+0.9%) and DXG (+0.6%). The sector was the best performer this week with growth of 2.6%. We believe investors are currently paying attention to real estate stocks as they bounce back from declines in 1H24. Construction & Materials gained 0.06% today and 1.2% this week, led by HPG (+1.2%), HSG (+2.2%) and NKG (+3.0%).

Telecommunications (-0.9%) was the sector that fell the most today, led by VGI (-1.6%), FOX (-0.3%), CTR (-0.2%) and MFS (-2.4%).

PNJ was the strongest stock this week, gaining 11% from Monday. We believe the good performance came from its strong 7M24 business results as net revenue reached VND24.6tn (USD1bn), increasing 30.8% YoY and fulfilling 60.8% of our full-year forecast. (See details in our Analyst note)

Foreign investors net sold today with VND77bn (USD3.2mn). Selling momentum focused on HPG (VND138bn, USD5.8mn), VHM (VND56bn, USD2.3mn), HSG (VND42bn, USD1.8mn) and NVL (VND30bn, USD1.2mn).

Today’s main index drivers included GVR (+1.9%), HPG (+1.2%), CTG (+1.0%), VNM (+0.9%), and BID (+0.4%). On the other hand, some large caps were among today’s market laggards, such as FPT (-0.5%), LPB (-0.6%) and VRE (-1.0%).

Read the full report: HERE