Vietnam Daily Market Recap September 09, 2024

Market commentary: VN-Index drops, led by banks, real estate

The VN-Index sank at the open on Monday and stayed in negative territory to close down 0.5%, or 6.2 points, to 1,267.7. The HNX also decreased 0.5%, or 1.2 points to 233.4.

Most sectors fell today, led by Banks (-0.4%), Real Estate (-1.1%), Industrial Goods & Services (-0.6%), Food & Beverage (-0.5%), Financial Services (-1.0%), Construction & Material (-0.4%), and Telecommunications (-1.7%). On the other hand, Utilities (+0.3%), Basic Resources (+0.4%), Oil & Gas (+0.3%) and Automobile & Parts (+0.1%) were the only four sectors that gained today.

Steel stocks, led by HPG (+0.8%), HSG (+2.3%), NKG (+2.6%) and TVN (+4.4%), continued the strong gains from the previous trading day on Friday.

HVN (-2.6%) was one of the top laggards today due to media reports that the airline faces mounting debt obligations. In particular, as of June 2024, HVN’s short term debt was VND57.1tn (USD2.3bn), much higher than its current assets of VND16.2tn (VND657mn). KPMG noted in its review of the company’s 6M financial statements that HVN’s ability to continue as a going concern would depend mainly upon the extension of loans and the success of a restructuring plan currently under consideration, which we expect will be achieved.

FPT (-0.6%) fell today on heavy foreign net selling of VND108bn (USD4.3mn). Although FPT is primarily a software outsourcing company, its shares were boosted earlier in the year by foreign interest in its cooperation with NVIDIA for AI technology and chip manufacturing in Vietnam. However, NVIDIA shares have dropped sharply over the last month and investor sentiment toward the sector has been tempered. NVIDIA’s share price started to decline in June, which was also when foreign investors began significantly selling FPT shares.

Foreign investors net sold today VND470bn (USD19.1mn). The selling momentum focused on FPT (VND108bn, USD4.3mn), MSN (VND79bn, USD3.2mn), and HPG (VND76bn, USD3.1mn). Foreigners net bought DGW (VND38bn, USD1.5mn) and VCI (VND36bn, USD1.4mn).

Other top laggards today included VHM (-2.1%), VIC (-2.1%), BID (-0.5%), VNM (-0.8%), and FPT (-0.6%), which dragged an aggregate 3.1 points off the VN-Index. Conversely, other top gainers included GAS (+0.7%), HPG (+0.8%), and NAB (+1.9%).

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