Vietnam Daily Market Recap Dec 11

Dear Valued Clients,

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

Market Commentary: The VN-INDEX jumped 1.5% and regained yesterday’s loss

The VN-INDEX rose 1.5% to 1,046.0pts supported by positive performance across all the sectors. After the opening bell, the VN-INDEX started in a positive sentiment across all segments, led by BID (+4.2%), VIC (+1.8%), VHM (+1.7%), SAB (+3.3%), HPG (+3.2%), and GVR (+4.8%). These market pillars contributed a total of 8.3pts to the index’s gain. The index stayed in the green and slowly rose throughout today’s session, ending at its intraday high of 1,046.0pts (+1.5%). On the other hand, mid-cap stocks became today’s top laggards, including LGC (-6.9%), BCM (-1.7%) and BHN (-1.9%). At the end of the sessions, the VN-INDEX successfully ended at 1,046pts (+1.5%). The HNX-INDEX also rose 1.9% to end at 162.3pts.

All sectors rose today, led by Energy (+2.6%), Materials (+2.5%), and Utilities (+1.9%). Top index movers included BID (+4.2%), VIC (+1.8%), VHM (+1.7%), SAB (+3.3%), and HPG (+3.2%). Top index laggards consisted of LGC (-6.9%), BCM (-1.7%), BHN (-1.9%), APH (-1.1%), and EIB (-0.6%). Top three major put-through transactions were PME with 4.5m shares (VND382.6bn), FUEVFVND with 13.1m shares (VND207.4bn), and VJC with 1.6m shares (VND194bn).

Foreigners net bought on HOSE to the amount of VND473.7bn, and also net bought on HNX to the amount of VND8.3bn. They mainly bought PME (VND382.6bn), FUEVFVND (VND209.5bn), and VNM (VND120.5bn); and mainly sold GMD (VND230.3bn), VNM (VND108.2bn), and VHM (VND43.8bn).

Market News

Oil pushes past US$47 on vaccine optimism and demand recovery

Oil pushed past US$47 a barrel, extending a remarkable vaccine-driven rally that’s taken many in the market by surprise. Futures in New York rose 0.7% after jumping 2.8% Thursday. The first Covid-19 vaccine expected to be deployed in the U.S. won the backing of a panel of government advisers, helping clear the way for emergency authorization by the Food and Drug Administration. The dollar has also resumed its downward trend, making commodities priced in the currency more appealing. (Bloomberg)

Vietnam’s solar success story and notes for investors

Vietnam has effectively overtaken Thailand as the largest solar market in Southeast Asia with a surge in installed capacity over the past four years since the government issued the first feed-in-tariff (FIT) policy for solar projects. The long-awaited announcement of the FIT policy in 2016 for the solar power industry has resulted in an unprecedented increase in solar capacity and projects waiting for approval. Vietnam’s ground-mounted solar capacity, with less than 10 megawatts (MW) in June 2018, jumped to more than 6,314MW by September 2020, an increase of 141.5% from July 2019, Moritz Sticher stated.

Vietnam, with its economy forecast to grow at 6.5% to 7.5% annually from now until 2030, will require an annual power demand growth rate of 10%. Vietnam’s National Power Development Plan VII (Power Plan 7) for the 2011– 2020 period with a vision to 2030 includes a target to increase renewable energy (RE) from 3.5% of the total electricity production to 4.5% in 2020 and 6% in 2030. (Vietnamnet.vn)

Notable Corporate Events

Thanh Cong Textile Garment Investment Trading JSC (TCM VN, HOSE) – Business results: TCM’s 11M20 revenue dropped 3.5% yoy to VND3,163bn while profit jumped 15% yoy to VND233.3bn. The company has exceeded this year’s profit plan by 26%. (Ndh.vn)

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