Vietnam Daily Market Recap Mar 09

Market Commentary: VN-INDEX struggled at support level with high liquidity

Stocks directly benefiting from military tensions in Ukraine continued to advance substantially; however, real estate stocks and retail banks were under correctional strain, and the VN-INDEX struggled at the reference level and ended the day flat at 1,473.8pts. Following yesterday’s huge decrease, the market began with a common gap of 4.7pts higher. Nevertheless, this bullish gap was quickly filled as selling escalated across most industry groups, causing the market to sink into the bearish territory eventually reaching the intraday low of 1,462.9pts. In the context of favorable news for commodities, notably London joined Washington to ban Russian oil and gas imports in drive to punish Moscow over Ukraine invasion, the Kremlin responded by opening an edict on Tuesday saying it would restrict the export of some commodities following the Western oil bans, causing commodity stocks all saw impressive gains such as Oil & Gas, Steel, Fertilizer, and Transportation. Real Estate and Banking equities, on the other hand, were subjected to heavy selling, leading the market to struggle around the reference level. Opening the afternoon session, the market continued to fluctuate, although with a considerably lesser amplitude than the morning session and closed around the reference level before entering the ATC session. Net selling sessions with a volume higher VND1,000bn were seen by foreign investors for the third time in a row. VCB (+1.8%) recovered technically from yesterday’s sharp decline and ended up with the highest contribution, followed by GAS (+1.2%), PLX (+2.8%), EIB (+4.8%), and HPG (+0.8%). Stocks such as BID (-2.6%), MSN (-2.1%), BCM (-4.4%), VHM (-0.8%), and VRE (-2.8%), on the other hand, pushed to the index’s decline. At the end of the session, the VN-INDEX unchanged and closed at 1,473.7pts, and the HNX-INDEX decreased slightly 0.3% to 444.6pts.

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