Market Recap December 2022 - VN-Index's three-year winning streak ends

The VN-Index (VNI) pulled back after hitting the resistance level of 1,100. The VNI retreated on December 6 after reaching the resistance level of 1,100. Subsequently, the VNI moved sideways and edged down, which was partly driven by declines in global markets following the Fed’s rate hike on December 15. This 50-bp hike was softer than the Fed’s four previous hikes of 75 bps and in line with market expectations; however, the Fed expects the ‘terminal rate’ for the current tightening cycle could hit 5.0%-5.25%, which is 50 bps higher than the range expected at its September 2022 meeting. In addition, local media reported on December 26 that South Korea’s SK Group was potentially considering to sell its stakes in some large-cap companies in Vietnam, which contributed further to the market’s decline. Despite a rebound after SK Group denied this story, the VNI closed December at 1,007, falling 3.9% MoM and 32.8% in 2022, which is its steepest annual decline since 2008 (-65%) and ends a three-year winning streak. With this result, the VNI underperformed other neighboring markets such as Indonesia’s JCI (+4.1%), Thailand’s SET (+0.7%) and the Philippines’ PCOMP (-7.8%) in 2022.

Real estate sector experienced the sharpest decline in December. The real estate sector declined 14.3%, which was mainly driven by VIC (-22.7%), VHM (-11.9%) and NVL (-40.0%). Other top laggard sectors were diversified financials (-5.5%) — led by SSI (-8.0%) and HCM (-8.9%) — and consumer staples (-5.4%) — led by MSN (-8.8%), VNM (-8.1%) and SAB (-7.3%). Meanwhile, the energy sector (+6.0%) was the top gainer thanks to PLX (+7.5%) and PVD (+13.0%).

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