The VN-Index on Thursday repeated a familiar pattern of recent weeks by opening higher before heavy selling in the afternoon left the market sharply lower. The index plunged 3.3% today, its third day of a drop of at least 3% in the last five days and is down 13% since hitting a record high less than three weeks ago. After today's declines, the VN-Index P/E ratio has fallen below the level of 19.3x that it held at the beginning of 2018. Financials again led decliners. CTG (-6.9%), VPB (-6.8%
After the first 30 minutes of trading on Tuesday, the VN-Index was down 2.6% before the market reversed to close the day up four tenths of a percent, a nice rebound from a rough morning but still a modest gain in the context of yesterday's sharp decline. VIC (+3.1%) was the top contributor to the day's gain and has weathered the recent storm better than the overall market, dropping just 5.9% in the last two weeks after doubling over the previous four months. Trading was heavy in VIC, acco
HPG: Q1 2018 results show growth momentum maintained. HPG announced that its Q1 2018 revenue rose 25% vs Q1 2017 to VND13.0tn (USD573mn) while PAT grew 14% to VND2.2tn (USD96.9mn). This result is in-line with our forecasts as it meets 23% of our full-year 2018 earnings expectation of VN9.4tn (USD413mn, +17%).
CII: Cancellation of rights issue approved by BOD. CII’s BOD has approved the cancellation of the 2:1 rights issue to existing shareholders at VND10,000/share, subject to shareholder approval at CII’s AGM on April 24, 2018. This is in line with our expectations, as we assume CII will finance its project pipeline with debt. CII is still in negotiations with financial institutions to issue straight bonds of VND1.3tn (USD57.3mn). To date, it has issued 23% of this target, or VND300bn (USD13.2mn).
The VN-Index suffered its biggest one-day loss in more than two months, plummeting 3.9% on Thursday amid no apparent domestic or external news catalyst. The index has dropped six of the last eight days and is down 9.1% since hitting a record high early last week. Several of the market's high-flyers that fueled a 65% surge over the last year to the recent all-time high led today's sell-off, including VIC (-6.9%), MSN (-7.0%), PLX (-7.0%) and VJC (-6.1%).
The VN-Index opened higher but strong selling in the afternoon left the market down 1.3% at the close. The index has dropped 5.5% since hitting a record high early last week. Banks once again led the market as VCB (-3.3%), BID (-4.1%) and CTG (-3.6%) were the top contributors to the day's loss. Bucking today's trend were HDB (+2.0%) and EIB (+4.1%), the later reaching a six-year high.
The VN-Index rose a modest four tenths of a percent on Tuesday. Financial tickers accounted for seven of the ten top gainers of the day, including BID (+4.8%), VCB (+1.7%), CTG (+2.4%) and BVH (+3.5%). VNM (-2.9%) extended a 13% slump over the last three weeks and has dropped six of the last seven days.
MOF proposes annual property tax. The Ministry of Finance (MOF) and Government plan to propose a new property tax to the National Assembly during the 14th legislature. If this proposal is passed, it will be the first annual property tax to be imposed in Vietnam. At present, developers and land owners make a one-off payment in land-use right fees to the Government. As part of the proposal:- The property tax act will include two components: (1) Annual land tax and (2) Annual asset tax.
Trump directs his team to look into re-joining the TPP. It was reported that during a meeting of US President Trump with lawmakers from agriculture states yesterday (April 12), Trump directed economic advisor Larry Kudlow and trade representative Robert Lighthizer to look into re-joining the TPP, a deal that he withdrew from after taking office last year.
Today's trading began with what looked like it would be continuation of yesterday's sell-off. The VN-Index fell one percent in the first half hour of trading but then shook off a two-day slump, bouncing back to close up half a percent on Thursday. GAS (+3.2%) was the top contributor to the day's gain as the price of Brent crude oil jumped above USD72/bbl to nearly a three-year high in overnight trading. Other energy names also advanced, including PVD (+7.0%), PVT (+2.0%), PLX (+1.3%) and Ha