Vietnam Daily Market Recap Dec 24

Dear Valued Clients,

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

Market Commentary: The VN-INDEX lost 1.1% as market pillars tumbled

The VN-INDEX lost 11.4pts due to strong selling pressure across all sectors large caps. After the opening bell, the VN-INDEX gradually fell to its intraday low of 1,046.9pts (-2.9%) as strong selling pressure emerged across all sectors, especially the Financials large caps. Notably, BID became today’s top laggard, losing 2.4% to end at VND45,500, followed by VHM (-1.3%), VNM (-1.4%) and TCB (-2.6%), eroding 3.8pts of the index. Other stocks from the Financials sectors also contributed to the loss, including CTG (-1.6%), ACB (-2.8%) and HDB (-3.3%), keeping the index in the red throughout today’s session. On the other hand, few other large caps supported the VN-INDEX, including SAB (+0.5%), KBC (+7.0%) and VJC (+0.3%), together adding only 0.4pts to the index. However, due to strong profit taking activities, both the VN-INDEX and the HNX-INDEX ended in the red. At the end of the session, the VN-INDEX closed down 1.1% to 1,067.5pts. The HNX-INDEX edged down 1.4% to 187.6pts.

All sectors lost ground today, led by Financials (-1.4%), Industrials (-1.3%), and Utilities (-1.2%). Top index movers included KBC (+7.0%), SAB (+0.5%), MSB (+1.8%), VJC (+0.3%), and CMG (+6.1%). Top index laggards consisted of BID (-2.4%), VHM (-1.3%), VNM (-1.4%), TCB (-2.6%), and CTG (-1.6%). Top three major put-through transactions were EIB with 14.6m shares (VND279.6bn), JVC with 20m shares (VND104bn), and VSC with 1.4m shares (VND81.2bn).

Foreigners net sold on HOSE to the amount of VND88bn, while net bought on HNX to the amount of VND11.1bn. They mainly bought VCI (VND52.9bn), VHM (VND50.5bn), and VRE (VND50.3bn); and mainly sold VNM (VND80.0bn), HPG (VND74.9bn), and SSI (VND43.9bn).

Market News

Oil set for first weekly loss since October on new virus strain

Oil was poised for its first weekly loss since October as the discovery of a potentially faster-spreading variant of Covid-19 in the U.K. raised the risk of more energy demand-sapping lockdowns. Futures in New York edged higher Thursday, but are down around 2% this week near US$48/barrel. Tougher restrictions were imposed across a large swath of England in an effort to rein in the mutant strain, which has alarmed scientists and governments around the world because early analysis suggests it may be as much as 70% more transmissible than other circulating strains. (Bloomberg)

Vietnam launches first-ever free trade agreement portal

The Ministry of Industry and Trade yesterday launched the Vietnam Free Trade Agreement Portal (FTAP) to help the domestic business community make the most of the opportunities brought about by trade deals to which Vietnam is a party. The launch was attended by Deputy Prime Minister and Foreign Minister Pham Binh Minh, World Bank Country Director for Vietnam Carolyn Turk, and Ambassador of Australia to Vietnam Robyn Mudie. The portal, at fta.moit.gov.vn, the first in Vietnam, has been developed by the MoIT and the World Bank, with support from the Government of Australia, since February 2019. It provides a smart online look-up tool for enterprises and others who wish to explore various FTA commitments regarding import duties, rules of origin, and services and investment. It also offers information and knowledge essential to foreign traders, such as market updates and local regulations on imports and exports as well as sustainable development. (Vietnamnet.vn)

Notable Corporate Events

Vietnam Engine and Agricultural Machinery Corporation (VEA VN, UPCOM) – Dividend payment: VEA has set 5 Jan 2021 to be the record date for paying the 2019 cash dividend of VND5,253/share. The payment will be made on 5 Feb 2021. (Ndh.vn)

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