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Vietnam Daily Market Recap July 03, 2024

Daily Market Recap 03/07/2024    100


Market Commentary: VN-Index rises for third day

The VN-Index opened higher on Wednesday, only to face selling pressure shortly after, leading the index to decline to its session low. However, in the afternoon, the market recovered and closed with a gain of 0.6%, or 7.1 points, to 1,276.85 for a third day of gains. The HNX Index also increased by 0.3% to 241.43.

BID (+3.2%) stood out as one of today’s top performers. After a 20% decline from its peak in March to more attractive price levels, BID saw its second consecutive session of recovery. Our blended target price suggests a P/B ratio of 2.1x FY24 BVPS, surpassing the sector’s historical five-year average (1.3x), reflecting our optimistic long-term outlook for BID following the completion of its capital raising plans.

POW (+4.1%) rose today as investors anticipate robust 2Q24 earnings. Total electricity output of the company for the first six months reached 8.574 mn kWh, equivalent to 103% of the same period in 2023. In 2Q24, POW is expected to achieve nearly VND10tn (USD393mn) (+19% YoY, +60% QoQ) in revenue. 

FPT (+2.3%) also jumped after three consecutive down days and was the second biggest contributor to today’s gains. Additionally, the Technology sector (+2.1%) emerged as the best-performing sector, led by VNZ (+2.1%) and FPT.

Utilities (+1.2%) and Banks (+1.0%) also outperformed other sectors, led by POW, REE (+1.3%), VCB (+0.3%) and BID. On the other hand, Telecommunications (-0.7%), Retail (-0.6%) and Travel & Leisure (-0.5%) weighed on the market.

Foreign investors had their twentieth consecutive net selling session today with a net trading value of VND533bn (USD21mn), focusing on VRE (VND414bn, USD16mn), VHM (VND99bn, USD3.9mn) and MWG (VND87bn, USD3.4mn). On the contrary, BID (VND77bn, USD3.0mn), HDB (VND37bn, USD1.5mn) and VPB (VND34bn, USD1.3mn) were mainly bought.

Other top performers today included TCB (+2.6%), and LPB (+2.0%). Conversely, top laggards included HVN (-1.4%), VIC (-0.6%), VRE (-1.8%), MWG (-0.8%), and BVH (-1.3%).

Read our full report: HERE