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Vietnam Daily Market Recap Dec 29

Daily Market Recap 29/12/2020    179

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Dear Valued Clients,

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

Market Commentary: Real Estate stocks fueled VN-INDEX rise

The VN-INDEX gained 8.2pts despite the early sell-off as investors sought to buy Real Estate stocks. The U.S stock market had an impressive performance the previous night, with the Dow Jones Average Index recorded a new high by rising 0.7% to 30,404pts after President Donald Trump signed the economic relief package. In Vietnam, the index immediately tumbled after the opening bell to the intraday low of 1,087.9pts (-0.3%) as profit taking activities pushed down many large caps. Notably, GVR became the largest laggard after dropping 3.1% and alone wiping 1.0 pts off the index. The stock was followed by VPB (-1.9%), CTG (-0.4%), TPB (-1.5%), and HDB (-0.8%). However, thanks to the large support from Real Estate and Financials stocks, the VN-INDEX quickly recovered and rose to its intraday high of 1,102.8pts (+1.1%). The largest support came from the Real Estates sector with VHM (+3.0%), VRE (+3.9%), and VIC (+0.6%), together adding a combination of 3.6pts to the index’s gain. Market pillars from Financials and Consumer Staples sectors also joined the rally, including VCB (+1.2%), BID (+1.9%), BVH (+4.7%), SAB (+1.4%), VNM (+0.5%), and MSN (+1.0%). At the end of the session, the VN-INDEX jumped 0.8% to close at 1,099.5pts, and the HNX-INDEX also surged 0.3% to land at 197.1pts.

Real Estate (+1.7%), IT (+1.1%), and Industrials (+1.0%) rose, while Health Care (-0.3%) lost ground today. Top index movers included VHM (+3.0%), VCB (+1.2%), BID (+1.9%), VRE (+3.9%), and BVH (+4.7%). Top index laggards consisted of GVR (-3.1%), VPB (-1.9%), CTG (-0.4%), TPB (-1.5%), and HDB (-0.8%).

Market News

Oil pushes higher aided by dollar amid grim short-term outlook

Oil pushed higher with support from a weakening dollar as investors weighed a worsening short-term demand outlook against an eventual rebound as Covid-19 vaccines are rolled out. Futures in New York rose past US$48/barrel after falling 1.3% Monday. A dip in the dollar boosted the appeal of commodities like oil that are priced in the currency. Crude was also aided by an improvement in broad market sentiment after the House backed higher stimulus checks following President Donald Trump’s signing of a US$900bn virus relief package. (Bloomberg)

Vietnam insurance market sees growth this year despite COVID-19

Vietnam’s insurance market has experienced growth this year, while many other sectors are suffering a lot of negative impacts from the COVID-19 pandemic, according to the Ministry of Finance. The ministry reported total insurance premium revenue in 2020 is estimated at VND184.7tr (US$7.86bn), an increase of 15% compared to 2019. Total non-life insurance premium was VND57.1tr (up 8%) and life insurance was VND127.6tr (up 19.6%). Insurers have paid VND48.2tr for customers, a surge of 11.4% yoy. According to the ministry’s Department of Insurance Management and Supervision, the pandemic has been controlled to create a stable business environment for local enterprises, including insurance companies, helping them resume and promote business activities. To achieve the dual goal of both controlling the pandemic and ensuring economic development, the Government has implemented a series of solutions and policies to remove difficulties and support people and enterprises. The ministry has also completed policies to support insurance companies for the comprehensive and sustainable development of the domestic insurance market. That would help the insurance companies stabilise their business in the context of a sharp reduction in benefits from investments and interest rates of government bonds as well as the unpredictable development of the pandemic. The ministry has reduced and simplified administrative procedures to remove difficulties for enterprises. It has also reduced contributions of insurance companies to the insurance protection fund from 0.15% of the total insurance premium revenue to 0.05%. Meanwhile, insurance companies have reviewed and cut expenditures to improve operational efficiency, and increased charter capital to improve financial ability and expand distribution channels. In addition, they have promoted the development of health insurance and healthcare products. They have also increased investment in information technology and digital transformation to improve service quality, operational efficiency and risk management ability. In addition, people’s demand for insurance products is increasing because their awareness of the importance and significance of life and health insurance has been raised significantly, according to the department. It expects that in the future, the legal framework for the insurance business sector will be completed to create a transparent business environment and favorable conditions for the development of this market. (Vietnamnet.vn)

Notable Corporate Events

Fecon Corporation (FCN VN, HOSE) – Treasury stocks: FCN decided to sell more than 1.5m treasury stocks to supplement the working capital. The transaction is expected to be made from 07 Jan 2021 to 06 Feb 2021. (Ndh.vn)

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