Vietnam Daily Market Recap Dec 18

Dear Valued Clients,

We would like to send you our Daily Market Recap for today

Market Commentary: The VN-INDEX regained 15.7pts to reach 1,067.5pts

The VN-INDEX closed up 1.5% at 1,067.5pts backed by Financials large caps. Following the positive sentiment from the Dow Jones Industrial Average’s gain of 0.5%, the VN-INDEX opened in the green and stayed in the green territory the whole session. Large caps from the Financials sector became the market’s mover, led by VCB (+3.0%), VPB (+6.9%), TCB (+3.0%), MBB (+4.5%) and BID (+1.3%), contributed 6.6pts to the index’s gain. Other large caps also joined the rally, including GVR, HPG, and SAB. In the afternoon session, the VN-INDEX slowly climbed to its intraday high of 1,068.6pts (+1.5%) as all sectors rose. On the other hand, APH (-7.0%) and VHC (-3.6%) became today’s top laggards. At the end of the session, the VN-INDEX edged up 1.5% to land at 1,067.5pts. The HNX-INDEX also rose 2.9% to 177.0pts.

All sectors rose today, led by Financials (+2.7%), Energy (+2.5%), and Materials (+1.6%). Top index movers included VCB (+3.0%), GVR (+5.6%), VPB (+6.9%), HPG (+2.5%), and TCB (+3.0%). Top index laggards consisted of APH (-7.0%), VHC (-3.6%), VCF (-3.5%), TCM (-6.4%), and HPX (-1.4%). Top three major put-through transactions were TCB with 8.8m shares (VND239.4bn), VPB with 4.3m shares (VND128.9bn), and VJC with 1m shares (VND126.5bn).

Foreigners net bought on HOSE to the amount of VND9.3bn, while net sold on HNX to the amount of VND0.6bn. They mainly bought VHM (VND124.4bn), HPG (VND119.2bn), and VRE (VND119.1bn); and mainly sold HPG (VND240.5bn), VNM (VND234.7bn), and VIC (VND92.5bn).

Market News

Oil near highest level since February with bumper rally pausing

Oil was steady after its highest close in almost 10 months as U.S. lawmakers worked toward finalizing a stimulus deal that may boost near-term demand ahead of a broad roll-out of the Covid-19 vaccine. Futures in New York were near US$48, headed for a seventh weekly gain. Oil is the “vaccine trade” at the moment, according to Goldman Sachs Group Inc., and prices have gained further support as the U.S. works through the final points of a stimulus package worth almost US$900bn. (Bloomberg)

Apple to move iPad, MacBook assembly lines to Vietnam

Electronics manufacturer Foxconn of Taiwan (China) has initiated plans to move part of their assembly line for iPad and MacBook products from China to Vietnam following a request made by tech giant Apple. The new production lines in the country are expected to come into operation during the first half of next year, according to Reuters. Meanwhile, Bloomberg confirmed that Apple’s assembly partners have been striving to ramp up their iPhone production capacity in India, whilst companies that assemble the AirPods have added some new assembly lines in Vietnam. Foxconn recently unveiled plans to expand production in Vietnam with an investment of approximately US$270m. Firms located in Taiwan (China) such as Foxconn also remain concerned about the trade war and are devising ways in which to move production out of China and into locations such as Vietnam, Mexico, and India. (Vietnamnet.vn)

Notable Corporate Events

Vietnam Rubber Group JSC (GVR VN, HOSE) – Business results: GVR’s 2020 estimated revenue rose 3% yoy to VND23,032bn and estimated pre-tax profit also edged up 6% yoy to VND4,955bn. The company plans to meet 100% this year’s profit plan. (Ndh.vn)

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