Vietnam Daily Market Recap Nov 26

Dear Valued Clients,

We would like to send you our Daily Market Recap for today

Market Commentary: The VN-INDEX closed above 1,000pts for the first time in 2020

The VN-INDEX gained 0.6% to close at 1,005.97pts backed by support from Financials and Industrials large caps. Following the Dow Jones Industrial Average’s slight decrease yesterday of 0.6%, the VN-INDEX dropped to its intraday low of 994.9pts (-0.4%) right after the ATO session. VHM and HPG became today’s largest laggards, edging down 1.0% and 1.4% to end at VND82,700 and VND35,100, respectively. Other large caps also joined the rally, including VNM (-0.5%) and VRE (-1.2%). However, the VN-INDEX made a strong reverse in late trading, mostly driven by BID’s advance of 3.1%. Financials and Industrials blue chips managed to park at a higher ground, led by CTG (+3.2%), BCM (+6.9%), GVR (+2.6%) and VCB (+0.5%), which added 3.9pts to the index’s gain. At the end of the session, the VN-INDEX edged 0.6% up to land at 1,005.97 pts, its eight-day gaining streak. The HNX-INDEX also ended up 0.2% to close at 148.4pts.

Energy (+1.6%), Financials (+1.2%), and IT (+0.8%) rose, while Materials (-0.4%) and Health Care (-0.1%) lost ground today. Top index movers included BID (+3.2%), CTG (+3.2%), BCM (+6.9%), GVR (+2.7%), and VCB (+0.5%). Top index laggards consisted of VHM (-1.0%), HPG (-1.4%), VNM (-0.5%), VRE (-1.2%), and BVH (-1.1%). Top three major put-through transactions were HDB with 19.5m shares (VND486.9bn), DIG with 17.4m shares (VND371.8bn), and HSG with 19.3m shares (VND325.2bn).

Foreigners net sold on HOSE to the amount of VND528.7bn, while net bought on HNX to the amount of VND8.6bn. They mainly bought HDB (VND194.5bn), HPG (VND67.9bn), and FUEVFVND (VND58.2bn); and mainly sold HDB (VND487.7bn), HPG (VND225.3bn), and MBB (VND62.2bn).

Market News

Oil slips from 8-month high with rally grinding to a halt

Oil fell from an eight-month high as the dollar recovered, while disparities in demand set the stage for OPEC+’s key policy meeting next week. Futures in New York dropped 1.6%, with the dollar erasing earlier declines to trade higher. After stellar gains so far this month, both West Texas Intermediate and Brent crude futures settled technically overbought on Wednesday, a sign that a possible reversal had been on the cards. (Bloomberg)

Vietnam needs to take full advantage of free trade agreements

To maximize the advantage of export opportunities from free trade agreements (FTAs), enterprises have to take into account the criteria for sustainable development. Sustainable development is the cross-cutting standpoint embraced by the Party and the State policies and has been integrated into 10-year socio-economic development strategies and five-year socio-economic development plans. Most recently, on September 25, 2020, the Government issued Resolution 136/CP-NQ on sustainable development. One of the guiding viewpoints of Resolution 136 is that humans are the core of sustainable development. This viewpoint can be seen in FTAs, especially the two new FTAs, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). According to statistics of the Ministry of Industry and Trade, after a year of implementation of the CPTPP, in 2019, Vietnam’s exports to Canada reached US$3.86bn, up 28.2% from 2018; to Mexico US$2.84bn, up 26.8%; to Chile nearly US$1bn, up 20.5%; and to Peru US$350m, up 40%. Vietnam’s trade surplus with 10 CPTPP partners was nearly US$4bn. The EVFTA, which has been effective since early August, has brought initial benefits for enterprises. According to the ministry’s figures, in the first month of implementation of the agreement, exports to the EU reached US$277m. These achievements are thanks partly to the lifting of the tariff barriers by 27 EU members and 10 Pacific-Rim countries as committed, with many commodities enjoying the zero tariff, facilitating Vietnam’s exports to those countries. The implementation of FTAs, including new generation FTAs, has promoted sustainable development and enhanced the quality of development. (Vietnamnet.vn)

Notable Corporate Events

KIDO Group (KDC VN, HOSE) – Dividend Payment: KDC has set 18 Dec to be the record date for paying the 2020 cash dividend of VND1,000/share, based on a company’s statement. The payment will be made on 18 Jan 2021. (Ndh.vn)

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