Vietnam Daily Market Recap Jan 06 – KBC

Market Commentary: The VN-INDEX set a new high of 1,528.6 pts owing to the backing of Vingroup-related stocks

The VN-INDEX increased 0.4% to 1,528.6pts, boosted by strong support from stocks associated with Vingroup. Following yesterday’s decline, the VN-INDEX started in the red with negative sentiment, but the index quickly moved to green territory and continued staying there until the morning session’s end. The market continued to rise in the afternoon session, mostly due to support from VINGROUP-related stocks. When Vingroup announced 3 new electric car models together with the plan of ceasing manufacture of traditional automobiles and focusing entirely on electric vehicle production from 2022, Vingroup-related stocks surged simultaneously. VIC (+4.5%), VHM (+1.5%), and VRE (+6.9%) contributed 7.5pts to the index’s rally. After reaching the intraday high of 1,536.2pts, the VN-INDEX promptly reversed course as selling escalated in other sectors. Several representative stocks contributed to the market’s drop, including MSN (-4.5%), CTG (-2.2%), HPG (-1.5%), GAS (-1.2%), and TCB (-1.5%). At the session’s end, the VN-INDEX stayed in the green territory, rising 0.4% to an all-time high of 1,528.6pts, and the HNX also increased 0.9% to 484.9pts.

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