Vietnam Daily Market Recap Mar 06, 2023 – HPG

Market commentary: Profit-taking pressure halted the VN-Index’s recovery effort

Following news of a new decree loosening bond regulation, the VN-INDEX rose before profit-taking in the afternoon caused the market to pare its gains, ending the session with a 0.2% gain to 1,027.2pts. A new decree, effective on Mar 5, on corporate bonds allows issuers to extend payments and to pay with other assets if holders agree. Digesting the good news, the VN-INDEX opened positively with a gap up of 12.0pts. Many Real Estate stocks experienced significant growth, particularly those that raise funds by issuing bonds. Following that, the Banking and Financial sectors also contributed to the rally. The market attained a high level of consensus and a session high of 1,042.2pts. When compared to the optimistic tone of the morning session, the afternoon session was less fruitful. The earlier surge failed to attract additional cash flow, causing the index’s gain to deflate and drop close to the reference level. Although the selling force developed in the afternoon, Real Estate stocks still performed well. Today, VHM (+2.8%) became the market’s major support, with CTG (+2.0%), TCB (+1.5%), NVL (+6.8%) and KDH (+6.4%) trailing behind. On the contrary, the index was pushed down by VJC (-4.9%), MSN (-2.1%), VNM (-1.3%) and GAS (-0.8%). At the end of the session, the VN-INDEX increased slightly by 0.2% to 1,027.2pts, and the HNX-INDEX increased by 0.8% to 206.6pts.

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