After dipping in early morning trading, the VN-Index recovered to inch higher on Wednesday, closing up two tenths of a percent. Trading volume in HCMC fell to USD159 million, well below its one-month average of USD198 million. VNM (+1.5%) and REE (+2.1%), which are up 25% and 60% year to date, respectively, each reached record highs amid no apparent news catalysts.
The VN-Index had its worst day in four weeks on Tuesday, closing down 0.7%. Banks stocks, which led the market to a fresh nine-year high yesterday, fell modestly today. PLX (-4.2%) was the largest contributor to the index's loss as investors took profits after the gasoline retailer surged 63% over the two months through yesterday.
Market wrap: Stocks stay hot as financials rally on Ocean Bank news. The VN-Index traded in positive territory for the entire session on Monday, rising half a percent to close above 770 for the first time since February 2008. Banks shares advanced, led by VCB (+1.1%), BID (+1.5%), CTG (+1.3%) and MBB (+0.9%), on news the government will allow Ocean Bank to be sold to a consortium dominated by an Asian investor.
FPT’s 5M 2017 results: Strong results from Telecom and Software Outsourcing; we expect acceleration for the latter in H2 2017. BUY. FPT released its 5M 2017 preliminary results with PBT of VND1.17 trillion (USD51 million, +12% vs 5M 2016). This result was mainly bolstered by solid results from Telecom Services and Software Outsourcing with the latter set to accelerate in H2 2017.
The VN-Index fell slightly for a second day on Thursday, edging lower by a tenth of a percent as investors took profits in bank shares that have rallied sharply so far this year. Banks cooled off, led lower by VCB (-1.4%), BID (-2.2%), CTG (-1.5%), STB (-2.1%) EIB (-2.2%) and MBB (-0.9%). MWG (+3.4%) jumped to a record high after local media reported the company's CEO saying that the firm plans to sell fresh fruit in its grocery chain supplied by HAG (+4.5%),
MSCI has announced its watchlist for its emerging market index, and Vietnam was not included. Investor speculation that Vietnam would be added to the watchlist had, in part, helped fuel a recent rally to a nine-year high yesterday, and the VN-Index fell as much as 1.2% during the morning session on Wednesday. However, by the close, the index had rallied and ended down less than a tenth of a percent
The VN-Index inched higher on Tuesday to a fresh nine-year high as investors continue to anticipate the National Assembly will announce legislation tomorrow regarding the resolution of bad loans. BID (+2.8%), EIB (+6.5%), CTG (+1.0%), STB (+2.8%) all rose to their highest levels since 2015 and have surged 45%, 46%, 45% and 54%, respectively, so far this year. MBB (+3.1%), which is up 59% year to date, reached a fresh record high.
MWG prelim 5M 2017: NPAT jumped 28% YoY, should accelerate off a lower base in H2 2017. BUY. MWG released preliminary 5M 2017 results, including net revenue of VND25.9 trillion (USD1.1 billion, +60% vs 5M 2016) and NPAT of VND896 billion (USD39.5 million, +28% vs 5M 2016). These were driven by aggressive store openings for DienmayXANH, solid SSSG, contribution from stores opened in 2016 and almost doubling online sales (+98% vs 5M 2016).
GAS: Pays final dividend for 2016. GAS announced that it will pay the final cash dividend of VND1,000 per share for 2016, with the ex-rights date on June 29 and payment date on July 24. This will bring the total 2016 cash dividend to VND4,000 per share (7.0% yield). We believe that GAS can offer such a dividend sustainably. GAS is trading at trailing P/E of 14.3x.
After touching nine-year highs the last two days, the VN-Index slid sideways on Thursday, closing down less than a tenth of a percent. ROS (-7.0%) fell to its trading floor for a second straight day, extending a three-month, 41% plunge. The construction firm had jumped to its trading ceiling the first two days of this week on news it will be added to the MVIS Vietnam Index.