Vietnam Daily Market Recap Nov 7

Stocks plunge, led by real estate, financials

The VN-Index opened lower on Friday and remained in negative territory throughout the session, closing down 2.7% at 1,599.1. Market liquidity surged 37.6% DoD to VND24.7tn (USD940mn). The HNX Index followed a similar pattern, closing down 2.3% at 260.1.

For the week, the VN-Index declined 2.5%, falling below the 1,600-point mark for the first time in 88 days. In the interbank market, the overnight (ON) interbank interest rate held at 6% for three consecutive trading days, indicating that liquidity pressure in the banking system is currently quite high. The SBV net injected VND30.5tn (USD1.2bn) this week, lifting the OMO balance to a record high of VND261tn (USD9.9bn). The tight system liquidity may require banks to raise deposit rates, contributing further to cautious investor sentiment in the coming week.

Most sectors decreased today, led by Real Estate (-4.0%), Retail (-3.5%) and Financial Services (-3.0%), while Telecommunications (+3.1%), Food & Beverage (+1.0%) and Technology (+0.5%) gained.

Top laggards today included VIC (-3.9%), VHM (-7.0%), and CTG (-4.1%), while top performers included GAS (+1.3%), FPT (+0.8%), and NAB (+0.7%).

Foreign investors continued net selling today with a total value of VND1.3tn (USD50.0mn), focusing on STB (VND297bn, USD11.3mn), marking the fourth consecutive session of foreign investors net selling the stock. They also net sold HDB (VND166bn, USD6.3mn) and MBB (VND112bn, USD4.3mn). On the other hand, buying momentum was focused on HPG (VND299bn, USD11.4mn), FPT (VND119bn, USD4.5mn) and PVD  (VND82.4bn, USD3.1mn).

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