Vietnam Daily Market Recap Dec 3 – HPA IPO Notes, Banking Sector Notes

Stocks advance, led by banks, retail

The VN-Index opened higher on Wednesday, and traded in positive territory throughout the session, closing up 0.9% at 1,731.8. Market liquidity improved, with total trading value surging 27.8% DoD to VND28.7tn (USD1.1bn). On the other hand, the HNX Index traded around its reference price during the session, posting a smaller gain of 0.2% to close at 259.7.

Most sectors rose today, led by Retail (+4.4%), Banks (+3.0%) and Telecommunications (+2.9%). Meanwhile, Real Estate (-0.8%), Utilities (-0.7%) and Construction and Materials (-0.5%) declined.

Three state-owned banks – CTG (+6.0%), BID (+4.2%) and VCB (+2.3%) – surged today, as the Government urged the State Bank of Vietnam to accelerate the charter capital increase for the “Big 3” listed banks. VietinBank (CTG) led the positive sentiment by announcing a massive stock dividend issuance at a ratio of 44.64%, with the shareholder list to be finalized on December 18. Meanwhile, Vietcombank (VCB) and BIDV (BID) are also actively deploying plans to issue billions of shares from retained earnings to bolster their financial foundations.

Top performers today included CTG (+4.0%), BID (+4.2%) and VCB (+1.0%). Top laggards included VIC (-2.0%), VPL (-3.7%) and GAS (-2.4%).

Foreign investors net bought today with a total value of VND3.6tn (USD139mn), with most of the buying value concentrated on VPL (VND3.4tn, USD131mn). Foreign investors also bought MBB (VND256bn, USD9.7mn) and VPB (VND197bn, USD7.5mn). On the other hand, selling pressure was seen in VIC (VND125bn, USD4.7mn), VCB (VND117bn, USD4.4mn) and FPT (VND92.2bn, USD.5mn).

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