Vietnam Daily Market Recap Feb 04 – VCB, VJC, PVD, VHM, BAF, DGW & BSR Earnings

Stocks plunge, led by Vingroup tickers

The VN-Index opened lower on Wednesday and traded in negative territory throughout the session, closing down 1.2% at 1,791.4, with most of the decline attributed to Vingroup-related stocks, including VIC (-7.0%) and VHM (-6.2%). Market liquidity improved, with total trading value edging up 2.2% DoD to VND34.1tn (USD1.3bn). The HNX Index also opened higher and maintained its positive momentum throughout the session, increasing 0.3% to close at 266.0.

Sector performance was mixed today, with declines led by Real Estate (-4.8%), Telecommunications (-1.8%) and Technology (-1.5%), while gainers were Basic Resources (+4.3%), Insurance (+3.2%) and Construction & Materials (+1.3%).

The Insurance sector advanced today (+3.2%) as the State Bank of Vietnam injected over VND65tn (USD2.5bn) to address liquidity tension following a sharp spike in interbank rates to 17% on February 3. Market sentiment is buoyed by expectations that if this liquidity stress is prolonged, it could force commercial banks to increase deposit rates, thereby boosting investment income for insurance companies which maintain significant cash and deposit portfolios.

Top laggards today included VIC (-7.0%), VHM (-6.2%) and VCB (-1.4%), while top performers included HPG (+5.8%), MCH (+1.0%) and VPB (+0.9%).

Foreign investors net sold today, with a total value of VND963bn (USD37.0mn), with selling momentum heavily focused on FPT (VND585bn, USD22.5mn), VIC (VND568bn, USD21.9mn) and VHM (VND332bn, USD12.7mn), while foreign investors mainly bought HPG (VND948bn, USD36.4mn), STB (VND160bn, USD6.2mn), and MBB (VND72.5bn, USD2.8mn).

Read the full report: HERE