Vietnam Daily Market Recap December 4, 2024 – TCB Update & ETF Report

Market commentary: Stocks decline as banks, real estate lag

The VN-Index sank at the open on Wednesday and drifted lower throughout the session, closing at the low of the day down 0.8% to 1,240.41. This was a bad trading day for the VN-Index, which lost 9.42 points, reflecting negative investor sentiment. Losses were spread across most sectors and losing tickers outnumbered gainers by nearly 3:1. The HNX-Index increased slightly in the morning session, but heavy afternoon selling pressure pushed the index down 0.3% to 224.62.

The market was led lower by Banks (-0.6%), Real Estate (-1.1%) and Food & Beverage (-0.4%). Conversely, Telecommunications (+0.2%) and Industrial Goods & Services (+0.1%) helped the market avoid a sharper decline.

Key gainers included VCB (+0.5%), SAB (+2.1%), VTP (+6.3%), and PLX (+0.8%). The 8th session of the XVth Vietnam National Assembly officially approved a proposal for an additional state capital injection into Vietcombank, amounting to over VND20.7tn (USD815.9mn). This supplementary capital will come from dividends paid in stock that state shareholders received, sourced from the accumulated profits up to the end of 2018 and 2021. Vietcombank is expected to soon issue dividend-paying shares, increasing its charter capital by VND27.7tn (USD1.1bn), equivalent to a payout ratio of 49.5%. After the issuance, the bank’s charter capital is projected to reach VND83.6 trillion (USD3.3bn), the highest in the Vietnamese banking system.

On the downside, BID (-2.0%) dragged the market down by 1.2 points. BIDV is expected to pay dividends in early 2025. At a recent investor conference, BIDV’s management stated that it will increase charter capital through dividend payments in stock (21% rate) after receiving approval from the Ministry of Finance, with completion expected in early 2025. In 2024, BIDV has not yet conducted any dividend payouts. The most recent dividend distribution was in December 2023, sourced from after-tax profits and fund allocations from 2021.

Foreign investors maintained their net selling streak for a third consecutive session, with net selling value reaching VND652.3bn (USD25.7mn) today. Buying momentum focused on HAH with VND71.9bn (USD2.8mn) and MSN with VND66bn (USD2.6mn). Meanwhile, selling momentum centered on MWG with VND260.2bn (USD10.2mn), FPT with VND134.2bn (USD5.3mn), and VRE with VND82.9bn (USD3.3mn).

Top index movers included VCB (+0.5%), SAB (+2.1%), VTP (+6.3%), PLX (+0.8%), and BMP (+3.1%). Top index laggards consisted of BID (-2.0%), VHM (-2.0%), CTG (-1.7%), MWG (-2.8%), and FPT (-1.0%).

Read the full report: HERE