Vietnam Daily Market Recap August 7, 2024 – Market Strategy August 2024

Market Commentary: VHM leads market higher on buyback announcement

The VN-Index opened higher on Wednesday but selling pressure dragged the market into the red by the end of the morning session. In the afternoon, buying interest returned, pushing the index back into positive territory to close up 0.5%, or 5.6 points, at 1,215.88. Meanwhile, the HNX Index rose by 0.7% to 227.95.

Real Estate (+2.5%), Chemicals (+2.3%) and O&G (+1.7%) gained the most today led by VHM (+6.9%), GVR (+3.8%) and BSR (+3.2%). On the contrary, Travel (-1.4%), Basic resources (-1.0%), Banks (-0.5%) and F&B (-0.5%) were the top laggards.

VHM hit its ceiling price and was the top performer today after the property developer announced a buyback of 370 million shares, equivalent to 8.5% of its outstanding shares. VHM said it believes its current share price is 21% below book value per share, according to its 2Q24 financial report (see our analyst note for more details).

Foreign investors net sold today with a net trading value of VND1.36tn (USD54mn), focusing on VHM (VND720bn, USD29mn), VPB (VND118bn, USD4.7mn) and HPG (VND112bn, USD4.5mn). On the contrary, VNM (VND210bn, USD8.3mn), FPT (VND37bn, USD1.5mn) and FRT (VND30bn, USD1.2mn) were mainly sold.

Other top performers today included GAS (+2.7%), VIC (+2.5%) and VRE (+5.9%). Conversely, top laggards included TCB (-2.2%), VPB (-1.9%), BID (-0.8%), CTG (-1.2%) and HPG (-1.0%).

Read our full report: HERE