Vietnam Daily Market Recap July 08, 2024 – VIB Update

Market Commentary: VN-Index inches higher for sixth day of gains

After gaining over 3%, or 35 points, last week, the VN-Index fluctuated near break-even on Monday, closing up 0.04%, or 0.52 points, to reach 1,283.56, for a sixth straight day of gains. The HNX Index also increased, closing up 0.4%, or 0.84 points, to 243.15.

Fertilizers/Chemicals (+3.6%) was the best performing sector, led by DCM (+7%), CSV (+7%), and DPM (+3.7%) thanks to positive business results in 1H24. In particular, revenue in 1H24 for the chemicals sector is estimated to grow 18%, fulfilling 55% of the year’s plan, while the combined profit of the sector is estimated at VND815bn (USD32.0mn).

CSV (+7%) hit its ceiling price for a third consecutive trading day following news about CSV issuing more than 66 million shares at a ratio of 100:150. After issuance, CSV will increase its charter capital from VND442bn (USD17.4bn) to VND1.1tn (USD436.6mn).

On the other hand, DXG (-4.9%) and DXS (-7%) plummeted today as DXS’s former Chairman and former CEO are alleged to be responsible for discrepancies regarding VND44.8bn (USD1.8mn) of funds raised by DXS through a bond issuance to a group of 15 bondholders. The total issuance value was VND150bn (USD5.9mn) with a term of 24 months from December 31, 2021. A police document states that there are claims that DXS did not fulfill the terms of the signed agreement.

Top contributors today included GVR (+4.0%), PLX (+5.8%), MWG (+2.1%), DCM (+7%), FPT (+0.7%), and POW (+3.1%), which contributed an aggregate 3.6 points to the VN-Index. Conversely, top laggards included VCB (-0.9%), VIC (-2.4%), SAB (-2.8%), and VHM (-1.2%).

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