The VN-Index edged higher on Wednesday, bolstered by small gains in VNM, SAB, GAS and VIC, four of the five largest listed companies by market capitalization. The government reported preliminary Q1 GDP growth of 5.1% YoY, which was below expectation and dampened investor optimism (see our note above). DQC (+5.5%) enjoyed its biggest one-day jump in four months amid its highest trading volume since July after announcing plans to complete its 2016 dividend payment in May.
The VN-Index dropped more than half a percent on Tuesday as profit takers stepped in after the market's recent rally. Financials, which helped fuel the recent gains, mostly sold off. MSN (-3.8%) led decliners, reversing a 17% surge between March 7 and 23. Meanwhile, KDH (+6.8%), which has soared 29% year to date, hit its trading ceiling on news that HCMC's Binh Chanh District, where KDH owns 400 ha of land bank, will likely be included into the city's urban core,
DHG: FY17 guidance broadly in line. VND3,500 cash dividend for FY16 and 2:1 bonus share issuance. Proposes FOL lift. DHG disclosed its AGM agenda, guiding for FY17 revenue +15.5%, broadly in line with our forecast while setting a conservative PBT target of VND800 billion (USD35 million, +5.7% vs FY16). We are looking at 10.8% PBT growth for FY17, while we forecast NPAT will grow faster at 12.8% vs FY16, supported by a lower tax rate.
Additional capital to Samsung Display Vietnam helps registered FDI surge in 3M 2017. According to the latest data released by Foreign Investment Agency (FIA), Vietnam’s Q1 2017 disbursed and registered FDI (including share purchases) reached USD3.6 billion (+3.4% YoY) and USD7.7 billion (+77.6% YoY), respectively.
The VN-Index jumped almost one percent on Thursday, closing at the high of the session to break through 718, a level that had provided stubborn resistance for the last month. Foreigners net bought USD21 million, the highest amount so far this year. VNM (+2.6%) reached a four-month high, advancing 7.7% over the last two weeks, after lower powder milk prices at the last two auctions helped boost investor sentiment.
The VN-Index appeared poised to reach a fresh nine-year high on Wednesday after the index rose to above 720 for the first time since February 2008. However, shares slumped sharply into the close, ending down almost half a percent. Energy names, such as GAS (-2.6%) and PVD (-1.7%), slid after Brent crude oil prices fell to a three-month low in Asian trading today. GAS hit a 10-month low and has dropped 24% over the last seven months.
The VN-Index inched up on Tuesday amid heavy combined volume in HCMC and Hanoi of almost USD240 million. After rallying sharply from December, the market has consolidated gains, trading sideways over the last month just below a nine-year high, unable to close above 718. Financials (+0.9%) were the best-performing sector for a second day, adding to yesterday's 1.6% increase, after VAMC proposed raising its registered capital in order to buy more bad debt (see our note above). VCB (+1.2%), MBB
Vietnam incurs trade deficit of USD1.8 billion in first two and a half months of 2017. According to the latest trade figures released by the Customs Office, Vietnam recorded a trade deficit of USD1.8 billion in the first two and a half months of 2017. Although YTD exports rose 14.7% YoY to USD35.2 billion, YTD imports rose even more, by 24.8% YoY to USD37 billion. Both export and import growth were much higher than the same period last year (2.5M 2016: exports +5.5% YoY, imports -4.2% YoY).
Market wrap: Stocks drop for third week. After spending most of the session trading near break-even, the VN-Index faded in the last hour on Friday, closing down more than half a percent. The index fell 0.2% for the week for a third straight week of losses after reaching a nine-year high on February 27.
The VN-Index crept higher on Thursday despite the US Fed increasing lending rates 0.25 ppts, as expected. The Fed signaled it expects three rate hikes this year, a policy investors interpreted as dovish, which sparked a global equity rally (see our note above). Combined trading value in HCMC and Hanoi jumped to USD212 million, 60% above the trailing one-year average. Brent crude oil prices rose overnight after a six-day sell-off, boosting energy names such as GAS (+1.1%) and PVD (+1.9%).