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Vietnam Daily Market Recap Jun 21, 2022

Daily Market Recap 21/06/2022    20


Market commentary: After retracing its step to the bottom in May, the VN-Index has shown signs of hesitation

In today’s session, the VN-Index struggled and diverged at a crucial May low, eventually finishing the day down 0.7% to 1,172.5pts. European equity markets rose on Monday following the sharpest weekly decline for global stocks since the pandemic-driven ructions of March 2020, while the VN-Index began with a 7.5pts deficit following the panic–selling at the beginning of the week. The index was immediately under pressure from the very first minutes onwards, which led to the impact on Securities, Fertilizer, Oil & Gas, Energy, Aviation, Real Estate, and Materials. However, due to strong demand from Banking groups, it was able to counteract the pressure from decliners and assist in the market’s gradual return to the green hue as the morning session was about to come to a close. In contrast to the favorable movement in the morning, there was a spike in selling, which caused the market to turn down and dive deep into the negative region. Particularly, a number of stocks belonging to sectors that have recently enjoyed high profitability, such as the Aquaculture, the Oil & Gas, Energy, and the Fertilizer, have all plunged to their floor prices. Prior to the commencement of the ATC session, the index languished around 1,170.0pts. When the index retreated to the significant bottom in May (1,264.0pts), liquidity fell by around 6% relative to the 5-day average, when it should have surged significantly here. Today, despite a small market decline, small and mid-cap companies were subject to intense selling pressure as the net contribution of gainers and losers was still positive. Indeed, VNM (+6.8%), VCB (+2.2%), BID (+2.7%), CTG (+2.0%), SAB (+2.0%), and TPB (+2.4%) added 7.1pts to the Index, while GAS (-4.2%), HPG (-3.7%), FPT (-3.2%), POW (-7.0%), VIC (-0.8%) and REE (-6.9%) subtracted 6.1pts. At the end of the session, the VN-INDEX inched up 0.3% to 1,230.3pts, while the HNX-INDEX increased 0.6% to 290.1pts.

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