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Vietnam Daily Market Recap Dec 31

Daily Market Recap 31/12/2020    305

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Dear Valued Clients,

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

Market Commentary: The VN-INDEX ended 2020 in the green

The VN-INDEX edged up 0.6% to 1,103.9pts on the back of Financials large caps and other market pillars. The VN-INDEX opened in the green, yet gradually dropped below the reference point as selling pressure emerged on Real Estate large caps of VHM (-0.8%), VIC (-0.3%) and NVL (-1.2%). However, the index quickly returned to the green territory thanks to the support from several market pillars. Notably, MSN (+6.5%), GVR (+5.1%) and TCB (+5.4%) became today’s top movers, contributing 4.8pts to the index’s gain. Other Financials large caps also joined the rally, including VPB (+2.2%), SSI (+5.1%) and CTG (+0.6%). The index reached its intraday high of 1,105.3pts (+0.7%) during the afternoon session and ended in the green at 1,103.9pts (+0.6%). The HNX-INDEX also climbed 3.1% to 203.1pts.

IT (+2.0%), Materials (+1.1%), and Consumer Discretionary (+0.9%) rose, while Energy (-0.3%) and Real Estate (-0.2%) lost ground today. Top index movers included MSN (+6.5%), GVR (+5.1%), TCB (+5.4%), HPG (+1.3%), and VPB (+2.2%). Top index laggards consisted of SAB (-2.5%), VHM (-0.8%), EIB (-4.2%), VIC (-0.3%), and NVL (-1.2%). Top three major put-through transactions were DGC with 2.5m shares (VND120.1bn), HNG with 6m shares (VND85.2bn), and FUEVFVND with 3.9m shares (VND65.8bn).

Foreigners net bought on HOSE to the amount of VND139.7bn, while net sold on HNX to the amount of VND28.9bn. They mainly bought HPG (VND79.1bn), FUEVFVND (VND73.7bn), and VHM (VND32.2bn); and mainly sold VHM (VND32.1bn), MSN (VND26.7bn), and VNM (VND26.4bn).

Market News

Oil ending turbulent 2020 with tailwind from U.S. stockpile draw

Oil headed toward the end of a tumultuous year on a positive note after a bigger-than-expected drop in U.S. crude inventories added to evidence the energy demand recovery remains largely intact. Futures in New York edged lower toward US$48/barrel after rising 0.8% Wednesday. Stockpiles fell by 6.1m barrels, about twice as much as analysts had forecast, official data showed. The figures are easing fears the market will become over-supplied when OPEC+ raises output next month. (Bloomberg)

Vietnam’s garment and textile industry targets US$39bn export turnover in 2021

The garment and textile sector is targeting an export turnover of US$38-39bn in 2021. After a year of hardship and low efficiency, investment projects in the garment and textile sector would no longer hold high priority. This would make it difficult for businesses to access capital so the commercial banking system would need to be flexible in credit ratings in proportion to the speed of market recovery. The first time in 25 years, Vietnam’s textile exports posted a negative growth rate at 10.5%, only reaching US$35bn compared to US$39bn in 2019. Global textile and apparel industry profits fell by 93% and many major fashion brands went bankrupt, which leads to workers losing their jobs. Meanwhile, thanks to effective pandemic prevention and no production interruption, the market share of Vietnam’s garment and textile continued to grow, reaching an export growth of 20% for the first time in the US market.

The UK-Vietnam Free Trade Agreement (UKVFTA), expected to come into effect at the beginning of 2021, could be an export boon for Vietnamese garment-textile and footwear enterprises. Minister of Industry and Trade Tran Tuan Anh and UK Secretary of State for International Trade Liz Truss signed the negotiations over the UKVFTA on December 11. 99% of tariffs on goods traded between Vietnam and the UK would be gradually reduced according to the FTA. (Vietnamnet.vn)

Notable Corporate Events

Petro Viet Nam Ca Mau Fertilizer JSC (DCM VN, HOSE) – Business results: For 2020, DCM’s revenue edged up 1% yoy to VND7,256bn, and its after-tax profit jumped 42% yoy to VND657bn. DCM sold an estimated 930,650 tonnes of urea fertilizer in 2020, up 16% yoy, the company said. (Ndh.vn)

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