Vietnam Daily Market Recap Dec 22

Dear Valued Clients,

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

Market Commentary: The VN-INDEX fluctuated throughout the trading session

The VN-INDEX gained 0.2% to end at 1,083.5pts with support from major market pillars. After the opening bell, the VN-INDEX dropped to its intraday low of 1,077.1pts (-0.4%) due to profit taking activities from Financials and other large caps, led by VCB (-1.0%), BID (-1.3%), and VIC (-0.7%). The VN-INDEX fluctuated around the reference point throughout today’s trading session. In the afternoon session, the VN-INDEX rose to the green territory thanks to the support from major market pillars. Notably, GVR (+6.8%) reached its ceiling price today at VND28,950 and became today’s top mover, alone adding 2.0pts to the index’s gain. Other large caps also joined in the rally, including HPG (+2.1%), MWG (+3.2%) and EIB (+6.8%). At the end of the session, the VN-INDEX closed in the green, edging up 0.2% to 1,083.5pts. The HNX-INDEX also rose 0.5% to 187.9pts.

Materials (+2.4%), Consumer Discretionary (+1.8%), and IT (+0.9%) rose, while Energy (-1.3%), Consumer Staples (-0.5%), and Utilities (-0.5%) lost ground today. Top index movers included GVR (+6.8%), HPG (+2.1%), MWG (+3.2%), EIB (+6.8%), and TPB (+3.8%). Top index laggards consisted of VCB (-1.0%), BID (-1.3%), VIC (-0.7%), VNM (-1.0%), and GAS (-1.2%).

Market News

Oil extends losses with virus mutation threatening energy demand

Oil fell toward US$47 a barrel after dropping the most since early November on Monday as a faster-spreading strain of the coronavirus discovered in the U.K. raised the risk of more lockdowns and less global travel. Futures in New York for February delivery are down more than 4% so far this week. Many countries have suspended travel with the U.K., where more than 16m people are now required to stay at home. A resurgence of the virus gathered pace in Asia, with Taiwan recording its first locally transmitted infection since April and a cluster of cases swelling in Sydney. A stronger dollar also reduced the appeal of oil that’s priced in the currency. (Bloomberg)

Key Vietnam’s transportation projects kick off in 2020

Construction of several national key projects, including the North-South Expressway and Long Thanh International Airports, have started. As for the North-South Expressway, three component projects have a total investment capital of VND35tr including the Mai Son – Highway 45 section through Ninh Binh and Thanh Hoa with a total length of 63.37 kilometers, the Vinh Hao – Phan Thiet section going through Binh Thuan province has 100.8 kilometers, and Phan Thiet – Dau Giay, which goes through Binh Thuan and Dong Nai, 99 kilometers. If the National Assembly agrees to the proposal, they will kick off in early 2021 and finish in late 2023. As for the Long Thanh International Airports project, in 2020, the Airports Corporation of Vietnam (ACV) started construction in December. In Phase 1, Long Thanh will have one runway, one passenger terminal and supporting items with the capacity of 25m passengers and 1.2m tons of cargo a year. It is expected to be completed by 2025. (Vietnamnet.vn)

Notable Corporate Events

Mobile World Investment Corporation (MWG VN, HOSE) – Business results: MWG’s 11M20 revenue rose 7% yoy to reach VND99,304bn, and its after-tax profit edged up 2% yoy to VND3,599bn, MWG’s report showed. The company has exceeded this year’s net profit plan by 4% and has met 90% of its revenue guidance. (Ndh.vn)

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