Vietnam Daily Market Recap Dec 17

Dear Valued Clients,

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

Market Commentary: The VN-INDEX lost 15.2pts today due to strong selling pressure from Financials and Real Estate stocks

The VN-INDEX lost 1.4% to close at 1,051.7pts as Financials and Real Estate large caps lost ground. The VN-INDEX opened in a pessimistic manner and stayed in the red territory for the whole session due to strong selling pressure from Financials and Real Estate large caps. Specifically, VCB became today’s top laggard, losing 3.9% to land at VND96,000, followed by CTG (-2.3%) and BID (-2.1%), together eroded 6.4pts of the index. Real Estate large caps also fell under strong selling pressure, led by VHM (-1.7%) and VIC (-2.1%), along with other large caps including HPG (-3.0%), GAS (-2.0%) and VNM (-1.1%). On the other hand, GVR (+3.0%) and TCB (+1.4%) became today’s largest supporter. At the end of the session , the VN-INDEX plunged to its intraday low of 1,051.7pts (-1.4%), while the HNX-INDEX edged up 0.2% at 172.9pts.

All sectors lost ground today, led by Energy (-2.2%), Materials (-2.1%), and Financials (-1.8%), Top index movers included GVR (+3.0%), TCB (+1.4%), VPB (+1.0%), TPB (+3.5%), and KBC (+7.0%). Top index laggards consisted of VCB (-3.9%), VIC (-2.2%), VHM (-1.7%), CTG (-3.7%), and BID (-2.1%).

Market News

Oil extends gain from 10-month high after U.S. stockpiles shrink

Oil extended gains from the highest settlement in almost 10 months after American crude stockpiles declined more than expected and as U.S. lawmakers edged closer toward a new stimulus agreement. Futures in New York rose above US$48 a barrel on Thursday after adding 2.7% over the past three sessions. Crude inventories dropped by 3.14m barrels last week, more than the median estimate in a Bloomberg survey. Gasoline stockpiles, however, gained for a fifth week, signaling weaker fuel demand. (Bloomberg)

Vietnam banks promote loans with low interest rates by year-end

Given abundant liquidity and low demand for credit, banks are offering attractive loans during the year-end period. Many banks in Vietnam are offering loans with low interest rates in an attempt to meet their respective year-end credit goals amid a lack of demand for capital during the Covid-19 crisis. Customers applying for this package would be entitled for a preferential rate from 5% per annum for loans with maturity under six months and a 5.5% rate for loans from six to 12 months (0.5 percentage points cut applicable to all terms). Over the past two months, credit growth averaged 1.2% per month, nearly double the growth rate recorded in the first nine months of the year. As of late September, Vietnam’s credit growth stood at 6.09%, but that of October and November hit 2.37%, higher than the average monthly growth rate in 2019. The market is expecting the 5th policy rate cut this year from the SBV to ensure the economy reaches its growth target of 2.5-3% (Vietnamnet.vn)

Notable Corporate Events

Post – Telecommunication Joint – Stock Insurance Corporation (PTI VN, HNX) – Business results: PTI’s 2020 estimated revenue rose 12% yoy to VND6,505bn and estimated after-tax profit also surged 2.2-fold to VND243bn. The company said the year’s profit gain came from a year-on-year increase in profit of investment activities and insurance sales. (Ndh.vn)

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