Vietnam Daily Market Recap September 30, 2024 – VJC Update & Analyst Note HAH

Market commentary: Index declines amid foreign selling

The VN-Index opened lower on Monday and closed down 0.2% at 1,287.9, as 115 stocks gained while 189 declined. Total trading value fell 24.4% to VND16.2tn (USD661mn). The HNX index fell 0.3% to close at 234.9.

The VN-Index rose 0.5% MoM in September, 3.4% QoQ in 3Q and 11.9% over 9M24. Banking stocks CTG (+5.5%), VPB (+6%), TCB (5.2%), and TPB (+15.6%) were outperformers in the July-September period. Overall, blue-chips led the charge in 3Q, with the VN30 rising 5.8%. We note that several ETFs are tied to this index or similar large-cap indices. At the same time, the more small-cap-focused HNX Index fell 1.1% QoQ.

Today’s decline in the index was led by VCB (-0.5%), VHM (-1.3%), BID (-0.8%), VIC (-1.1%), VNM (-1.2%), and BCM (-1.5%). Meanwhile Basic resources was the best-performing sector today with a gain of 0.8%, led by HPG (+1.2%) and HSG (+1.1%). Financial services (+0.7%) also continued to perform well thanks to the prospects of Circular 68/2024/TT-BTC and the anticipation of an upgrade of Vietnam’s stock market to EM status.

VPB (+1.7%) was the top contributor today, thanks to expectations of an earnings recovery in 2H24 due to credit growth prospects from the recovery of FE Credit, and greater income from lending to FDI projects and SMEs, and cross-selling products.

HPG (+1.1%) also performed well despite having the most net selling by foreign investors, thanks to investor anticipation of a domestic recovery of the real estate sector, favorable conditions created by lower input costs and rising selling prices, as well as the recent China stimulus package.

BAF (+2.6%) has risen 14.5% MoM on news of a collaboration between the company and Muyuan, China’s leading pig producer known for using advanced, automated pig farming technology, to implement smart farming solutions and aim for a production target of 10 million pigs by 2030.

BMP (-3.8%) had risen 24.7% from September 9 to September 23 to peak at VND127,900 / share but has now fallen back to VND118,600.

Foreign investors net sold today by VND576bn (USD23.4mn), ending the previous week’s net bought streak. Buying momentum focused on FPT (VND44bn, USD1.8mn), SSI (VND35bn, USD1.4mn), and VHM (VND34bn,  USD1.4mn). In contrast, HPG (VND291bn, USD11.8mn) and STB (VND110bn, USD4.4mn) were the most sold.

Top performers today were VPB (+1.6%), HPG (+1.1%), MSB (+3.5%), MWG (+0.9%), TPB (+1.8%), and SSI (+1.1%). Our laggards include VCB (-0.5%), VHM (-1.3%), BID (-0.8%), VIC (-1.1%), VNM (-1.2%), and BCM (-1.5%).

Read the full report: HERE