Vietnam Daily Market Recap July 04, 2024

Market Commentary:  Market inches higher for fourth day, led by Technology, Oil & Gas

The VN-index closed up 0.2% to 1,279.9 on Thursday for a fourth straight day of gains, while liquidity fell 3% compared to yesterday (VND13tn, USD540mn). The HNX-Index also rose 0.2%, closing at 244.

The Oil & Gas (+3.7%) sector gained the most, led by PLX (+4.9%) and OIL (+13.6%). There is a rumor that the Draft amendments of Decree 95/2021/ND-CP and Decree 83/2014/ND-CP, in which petrol distributors are allowed to set fuel prices according to market mechanisms as long as they do not exceed the price cap, are expected to be approved.

The Technology (+3%) sector also jumped, led by FPT (3.7%), which contributed more than 1.5 points to the index, followed by CMG (+2.6%), CTR (+0.6%), ELC, MFC, TTN, and ITC.

TV2 (-7.0%) hit its floor price after the Ministry of Industry and Trade (MIT) announced the termination of the BOT contract of Thermal Power Project Song Hau II.

GEX gained 0.7% after its subsidiary GELEX Electric (HOSE: GEE) was approved to list 300 million shares on HOSE. Trading of GEE shares rose today, with trading volume of 298,000 shares, equivalent to VND12.5bn (USD500,000).

Banks (-0.02%) saw mixed results. VPB (+0.3%), LPB (+3.8%), BID (+0.3%), HDB (+0.2%), TPB (+0.6%) and OCB (+0.4%) traded to the upside. Meanwhile, VCB (-0.6%) fell, taking 0.7 points off the index. SHB, EIB, ACB, MBB, VIB, EVF, SSB and CTG also fell by around 1%.

Construction & Materials (+0.03%) was also mixed, with HSG (+0.2%), TLH (+3.9%), SMC (+1.5%) and THD (+0.3%) closing in the green, while HPG (-0.2%) and VGC (-0.2%) slid.

Foreign investors continued to net sell for the 21st consecutive session. Total net selling was VND546bn (USD22.8mn), mainly focused on VRE (VND111bn/USD4.6mn), VHM (VND123bn/USD5.1mn), HPG (VND50bn/USD2mn) and MWG (VND47bn/USD1.9mn).

Read our full report: HERE