Vietnam Daily Market Recap July 19, 2024 -VHM Earnings Flashes

Market Commentary: Selling pressure returns

The VN-Index traded higher early in the morning session on Friday but drifted lower through the rest of the day, closing down 0.8% to 1,264.78, while liquidity fell 3% compared to yesterday (VND18.5tn, USD771mn). The HNX-Index also dropped 0.8%, closing at 240.52.

For the week, the VN-Index lost 1.5% (15.9 points) with losses on four out of the five days. Average trading value remained unchanged compared to last week (VND19.5tn, USD812,500).

Most sectors lost today, led by Banks (-0.3%), Real Estate (-0.6%), Financial Services (-0.6%) and Oil & Gas (-1.3%). Plastics & Chemicals (-2.9%) was the sector that lost the most today, led by GVR (-4.3%), DGC (-1.4%), DCM (-2.1%) and DPM (-1.1%). GVR was the index’s top laggard today, accounting for 1.5 points. In contrast, Retail (+0.6%) was the only sector to gain today, led by FPT (+1.2%), MWG (+0.9%) and DGW (+2.1%).

MBB (+2.0%) contributed the most to the index’s gain today with 0.6 points and was also the best performer this week (+10.3% WoW). MBB reported credit growth of 9% YTD in 2Q24 compared to only 0.4% YTD in 1Q24. NPL was down from 2.5% to 1.23% after CIC related was reallocated to Group 1 loan. Revenue is forecast to jump 14.8% YoY to VND22.5tn, PBT to jump 12.3% to VND13.2tn in 6M24.

Foreign investors net bought VND380bn (USD15.8mn). Net buying focused on FPT (VND232bn, USD9.6mn), TCB (VND105bn, USD4.4mn), MSN (VND87bn, USD3.6mn) and HSG (VND65bn, USD2.7mn).

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