Vietnam Daily Market Recap Mar 10 – VPB

Market Commentary: VN-INDEX rebounded marginally following a severe decline in liquidity

The VN-INDEX recovered for the second consecutive session, with the impetus coming mostly from Vingroup-related, Aviation, and Banking stocks, the market climbed modestly by 0.4% to 1,479.10pts, despite a 30% decline in volume. In light of the fact that the major stock indexes have all rebounded significantly after a series of steep drops, particularly the European indices as investor sentiment has shifted ahead of an EU summit on Thursday when leaders will discuss a new growth and investment model and ways to reduce dependence on Russian energy, VN-INDEX began positively with a gap up 11.4pts. Oil prices retreated sharply last night as the UAE encouraged other Opec members to increase output, putting negative pressure on Oil & Gas stocks, as well as those that have a positive correlation with commodity prices such as Fertilizer, Material, Chemicals, and Coal stocks. This selling pressure was swiftly supplanted by technical recoveries in stocks that had dropped precipitously recently, such as Banking, Vingroup-related, and Aviation. The market rebounded and remained in the green for the majority of the morning session. After a brief rise to 1,490.0-1,4950pts at the start of the afternoon session, the Index fell as deflationary pressure rose in large-cap categories, primarily Banking, forcing the market to plummet to the 1,480.0pts level before ATC the session began. The most significant contributions to the index were VHM (+1.6%) and VIC (+1.4%), which were followed by VNM (+2.7%), HVN (+4.8%), VCB (+0.6%), and BCM (+2.7%). On the other hand, top laggards were GAS (-3.0%), MSN (-3.5%), HPG (-1.4%), PLX (-2.7%), and GVR (-1.2%), pressing pressure on the index. At the end of the session, the VN-INDEX inched up 0.4% to 1,479.1pts, and the HNX-INDEX increased 0.6% to 447.6pts.

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