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Market value vs retail value

Local and foreign investors flee the market before Tet holiday

by bizhub.vn

Customers execute transactions in a Vietcombank transaction office. The bank’s share price plunged nearly 6 per cent today. — Photo courtesy of Vietcombank

Viet Nam’s stock market finished low on Monday before halting for Tet holidays.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) posted a loss of nearly 4 per cent, equivalent to 43.73 points, to end Monday at 1,083.18 points, sliding away from the 1,100 points level.

This marked the biggest intra-day loss for the index since its historic loss of over 73 points at the end of January.

The move was opposite to expectations from analysts who predicted the market would continue last week’s advance in the last two trading day before the holiday.

The index climbed 6.65 per cent last week. The market’s growth last week was following the trend in other markets around the world, MB Securities JSC said in its daily report.

On the southern market, 385 stocks declined with 18 stocks hitting the maximum daily loss, while 69 stocks increased. And 24 stocks ended flat. Local investors poured nearly VND13.8 trillion in the market with a trading volume of nearly 590 million shares.

The market was pressured from losses in big stocks.

Most large-cap stocks posted poor performance on Monday. The VN30-Index decreased by 3.78 per cent, equivalent to 42.91 points, to 1,092.59 points. Twenty-seven of 30 large-cap basket fell with one stock losing 7 per cent, while only three stocks gained.

Hoang Huy Investment Financial Services JSC was the one recording the maximum intra-day loss, down 6.87 per cent to VND21,000.

All sectors including banking, securities, real estate, construction, logistics, production, retail, IT and utilities fell sharply with many big stocks losing more than 3 per cent.

Top five stocks influencing the market’s trend were Vingroup JSC (VIC), down 6.05 per cent, Vietcombank (VCB), down 5.9 per cent, Vinhome JSC (VHM), down 4.63 per cent, Viet Nam Dairy Products JSC (VNM), down 3.92 per cent, and JSC Bank For Investment And Development of Viet Nam (BID), down 4.07 per cent.

On the Ha Noi Stock Exchange (HXN), the northern market benchmark HXN-Index declined by 1.38 per cent to 220.76 points, while the HNX30-Index lost nearly 3 per cent to 329.33 points.

More than 101 million shares were traded on the bourse, worth VND1.57 trillion.

Foreign investors were also net sellers on the southern bourse, with a net value of over VND1.4 trillion. Meanwhile, they bought a net value of VND21.25 billion on the northern market. — VNS

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Market edges higher, fertiliser stocks surge

by bizhub.vn

Workers unload products at one of Lam Thao Fertilizers And Chemicals’ warehouses. The company shares increased by 10 per cent on Wednesday. — Photo supelamthao.vn

Viet Nam’s stock market ended higher on Wednesday as the VN-Index bounced back in the afternoon session.

The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) reversed course to edge higher in Wednesday’s trade after dropping 0.38 per cent in the morning session. The index rose slightly 0.03 per cent to 1,186.95 points.

The market breadth turned positive at the end of the session with 270 stock rising, while 168 stocks decreased. And 64 stocks stayed unchanged.

While a total of over 628.77 million shared were traded today on the southern market, worth VND15.15 trillion, an overload occurred again on HoSE in the afternoon session.

In a daily report, Bao Viet Securities Co. said that the index might face corrections earlier in the sessions before recovering at the end of the session. And the market needs more time to accumulate to break over 1,200 points level in the near future.

The market received support from the containment of COVID-19 outbreaks and the upward trends of global markets, the company added.

However, strong selling pressure still weighed on the market, with many big stocks falling.

The VN30-Index, tracking the 30 biggest stocks on HoSE, gained 0.07 per cent to finish at 1,195.6 points. The index lost 0.37 per cent in the morning session. Eleven of the 30 large-cap stocks in the VN30 basket rose, while 15 stocks dropped.

Stocks from real estate and banking sectors still influenced the market’s trend.

Top five stocks contributing to the gain of the market were Investment And Industrial Development Corporation (BCM) up 5.35 per cent, Vietinbank (CTG) up 1.58 per cent, VPBank (VPB) up 2.09 per cent, No Va Land Investment Group Corporation (NVL) up 2.65 per cent and Vincom Retail JSC (VRE) up 2.31 per cent.

Fertiliser stocks also recorded big gains today with DAP – VINACHEM JSC (DDV) up 14.75 per cent, Lam Thao Fertilizers And Chemicals JSC (LAS) up 10 per cent, Petro Viet Nam Ca Mau Fertilizer JSC (DCM) up 6.69 per cent and Duc Giang Chemicals Group JSC (DGC) up 6.98 per cent.

Meanwhile, Vingroup JSC (VIC), Vinhomes JSC (VHM) and Vietcombank (VCB) extended their losses and limited the index’s gain.

On the Ha Noi Stock Exchange (HNX), the HNX-Index posted an increase of 2.48 per cent to end the trading day at 254.1 points. The HNX30-Index recovered from earlier losses, up 0.56 per cent to 375.61 points.

Domestic investors poured nearly VND2 trillion into the northern bourse on Wednesday, equivalent to over 131.1 million shares.

In general, the market’s liquidity was high with a total 821.9 million shared traded, including trading volume on UPCOM, worth nearly VND18.2 trillion.

Meanwhile, foreign investors were still net sellers on HoSE and HNX, with a net value of VND471.95 billion on the southern bourse and a net sell value of VND7.6 billion on the northern market. — VNS

Hanoi FC named among ASEAN clubs with highest market value

by vov.vn

The side from the capital have been placed 10th in the list.

The rankings are based on the market value of footballers from each club. Hanoi FC is the only Vietnamese club to have a high number of valuable international players in their squad. Indeed, the team feature an array of famous names, including Van Quyet, Quang Hai, Hung Dung, Duy Manh, Dinh Trong, Thanh Chung, and Doan Van Hau.

Transfermarkt states that the playing staff of Hanoi FC have an overall market value of EUR4.35 million.

Elsewhere, Buriram United FC of Thailand top the list with a market value of EUR6.9 million, followed by Johor Darul Ta’zim of Malaysia in second with a value of EUR6.73 million.

The pair are followed by four other clubs from Thai League, including Port FC with EUR6.33 million, Pathum United with EUR6.18 million, Bangkok United with EUR6 million, and Muangthong United with EUR5.03 million.

FDI businesses focus on Vietnam retail sector

by en.vietnamplus.vn

FDI businesses focus on Vietnam retail sector hinh anh 1 Big C is one of the FDI corporations gaining foothold in the Vietnam market (Photo: Vietnam+)

Hanoi (VNA) – The retail market in Vietnam in recent years continues to be active with many mergers and acquisitions as well as strong growth in the size of domestic and foreign enterprises.

Statistics released by the General Statistics Office show that retail sales in 2018 were estimated at 3.3 million billion VND, an increase of 12.4 percent compared to 2017.

Notably, according to Le Viet Nga, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade), many large foreign enterprises still consider Vietnam’s retail industry to be an attractive investment destination and they are mulling over expanding their investment scale and market share.

Vietnamplus has an interview with Ms. Le Viet Nga to provide a better understanding of the retail sector and orientations from the state agencies to create a level playing field, helping businesses grow together.

– What have been outstanding features in the Vietnamese retail market recently?

Ms. Le Viet Nga: Vietnam’s retail market has a great potential for growth due to its large population which reaches approximately 100 million.

Notably, 60% of the population are aged 18-50, the shopping age. Additionally, household spending is forecast to increase by 10.5 percent/year on average and will reach 714 USD / month by 2020, in which the coverage of Vietnam’s modern retail system remains lower as compared to other countries in the region but shows its rapid growth.

Recently, it can be seen that the retail market has had a strong development due to the economic recovery and it is on track to regain a high growth rate. The number of enterprises is increased. Production was recovered so the products supplying for retail were also on the rise.

The results of improving the business investment environment as well as increasing foreign investment in the retail sector are increasing.

It can be seen on the modern retail channel, Saigon Co.op is leading in terms of revenue in 2018, reaching approximately 32,000 billion VND; Vinmart and Vinmart + are also leading in presence which has reached 63 provinces and cities. There are now more than 100 Vinmart supermarkets, along with 1,700 Vinmart + and 66 Vincom centers.

Regarding foreign-invested distribution, the leading retailer remains Big C with 36 supermarkets in Vietnam, expected to increase to 40 supermarkets in 2019. Thanks to its sales programs for local products and specialties, Big C’s sales were half that of Saigon Co.op.

Notably, under the campaign “Vietnamese people give priority to using Vietnamese goods” launched in 2009, the proportion of Vietnamese products in traditional and modern retail distribution channels is increasing.

For example, in the first years of implementation of the campaign, the proportion of foreign goods accounted for 60-70 percent and now the situation has changed. In Big C and Saigon Co.op stores, the value of Vietnamese goods accounts for over 90%, while in other shopping centres, the proportion of Vietnamese goods accounts for 70-80%.

FDI businesses focus on Vietnam retail sector hinh anh 2 Ms. Le Viet Nga, Deputy Director of Domestic Market Department, Ministry of Industry and Trade (Photo: Vietnam+)

– How do you assess the growth of convenience stores over recent time?

Ms. Le Viet Nga: Recently, convenience stores have grown very quickly, especially in big cities with high population density, creating a well-developed market.

In Japan, where population and consumption culture is similar to that of Vietnam, there is a convenience store every 500 meters.

In Vietnam, many domestic and foreign businesses have recently invested in expanding convenience stores, led by Vinmart with 1,700 stores by the end of 2018 and expected to increase to 4,000 nationwide.

Meanwhile, Saigon Co.op and many other business systems are also starting to expand their business in convenience store chain.

– Do you think the rapid development of convenience stores is considered ‘too hot’?

Ms. Le Viet Nga: In my opinion, this is not the issue of whether it is developing excessively or not. The development depends on the market. Within 3 months, if the operation is ineffective, the business will certainly close. Otherwise, with positive growth, perhaps the market is on the right track.

– Amid the rapid development of convenience stores, how do you forecast about traditional retail channels?

Ms. Le Viet Nga: In my opinion, these are two different segments. Traditional markets are places with a variety of goods, where consumers can buy not only necessities but also popular products like condiments and spices. Plus, it is an opportunity for communication. The traditional markets are also places of cultural exchange.

If consumers prefer going to the market to bargain, communicate and talk to others, they will choose to go to the traditional market. For example, a convenience store is limited to 1,000 items then in the traditional market can, the volume be up to tens of thousands.

In addition, convenience store prices may be higher than those in traditional markets, and they are generally at average or above segment. Customers of convenience stores wish to buy popular brands or products with traceability. The presence of convenience stores is going up with the standard of living and income of the people.

FDI businesses focus on Vietnam retail sector hinh anh 3 Vinmart and Vinmart + are leading in terms of coverage in 63 provinces and cities (Photo: Vietnam+)

– So how does the Ministry of Industry and Trade forecast convenience store segment?

Ms. Le Viet Nga: The Ministry of Industry and Trade is moving in the direction of expanding to attract both domestic and foreign investment in this field as this is a channel with many advantages compared to many other distribution channels. It is suitable for urban lifestyle where people can shop in one place and avoid traffic jams when having to go shopping far away. It also a solution for some environmental and waste problems caused by traditional markets.

This is a new expansion model, which, through Decree 09/CP issued in 2018, highlighted that the convenience store and supermarket below 500 meters will not have to apply ENT in order to attract foreign investment.

– Thank you./.

VNA

Large-cap stocks to boost Vietnam’s stock market by year-end

by hanoitimes.vn

The Hanoitimes – Investment funds unexpectedly divested capital from Vietnam’s stock market in October. However, the local securities market is still expected to rally in November and the last quarter, driven by strong growth of large-cap stocks.

According to Saigon Securities Inc (SSI), Vietnam’s stock market performed well in October with the support of the information it could become the market with the highest proportion in the MSCI Frontier Market 100 Index, up from current 12.53% to 28.76%.

Large caps drove the market up. Photo: Tran Quynh.

October is also the time the positive business results of the third quarter would be reflected in the share prices.

The benchmark VN-Index closed October up 2.24% at 925.47 points, marking the third consecutive month of gains. The HCM City’s index was 3.7% lower than the 2019 year-end but has recovered 40.3% from the low level of 659.21 points seen on March 24 2020.

Large caps drove the market up. The VN30 increased 3.96% while VNMidcap and VNSmallcap dropped respectively 1.77% and 2.35% in October.

Across industries, construction materials, real estate, essential and non-essential consumption and information technology increased between 2.4-9.6%. These were only five groups that maintained positive growth in the month.

Biggest contributors to the VN-Index included VIC up 16.39%, MSN up 53.85%, HPG up 15.72% and PNJ up 14%.

On the other side, financial stocks decreased slightly by 0.4% due to slumps of some banks such as BID down 5.64%, TCB down 5.53%, and VCB down 1.31%.

Two big petrol stocks also dropped such as GAS down 1.26% and POW down 8.29%.

In October, the market liquidity continued rising despite strong sells by foreign traders. Trading value of all three exchanges increased 22.3%, averaging VND9.8 trillion per day, up 22.3% over September and up 111% year-on-year.

The 10-month trading value also climbed 27% year-on-year.

Foreign investors extended selling in October with net value of VND7.23 trillion, lifting total net sell value in the last 10 months to VND34.1 trillion.

Investment funds were the main sellers. They withdrew net US$23.7 million in October, the first net selling month after a five-month buying streak.

10 potential stocks for investment

Industrial production is still on the good track. The Index of Industrial Production (IIP) in October increased by 5.4% year-on-year, double the rate of the first 10 months of the year of 2.7%.

Other important indicators including foreign direct investment, the disbursement of public investment, foreign trade and retail also maintained impressive rises.

The third-quarter business results of listed companies also recovered remarkably. Net revenues of the VN30 group increased 4.5%.

SSI Research estimated the average profit of listed companies (representing 87% of the market capitalization) in 2020 could fall 18.8% compared to 2019. However, the situation will improve in 2021 with projected profit growth rate of 22.4% – close to the 2019’s level.

In the global scope, positive responses of the financial markets showed weakening impact of the US presidential election while the biggest risk remained the complicated development of the Covid-19. However, positive trial results of vaccine developers Pfizer/BioNTech is a good signal for the stock market.

According to SSI, low interest rates and quick recovery of Vietnam’s economy will continue to have positive impact on the stock market in the medium and long term.

Taking into account factors such as pricing, dividend payment, exchange shifting and positive business prospects, it suggested 10 potential stocks including HPG, ACB, CTG, ACV, FPT, MWG, VHC, SZC, DXG and VHM.

Capital inflows into Vietnam stock market surges 20% to over US$16 billion in 2020

by hanoitimes.vn

The Hanoitimes – The average transaction value in the stock market is estimated at VND7.05 trillion (US$304.8 million) per session, up 51.5% year-on-year.

The amount of capital poured into Vietnam stock market surged 20% in 2020 to VND383.6 trillion (US$16.64 billion), according to the General Statistics Office (GSO).

Stock market is an attractive option for local investors. Photo: Viet Dung.

The average transaction value in the stock market is estimated at VND7.05 trillion (US$304.8 million) per session, up 51.5% year-on-year.

On the bond market, the average transaction value climbed 11.3% year-on-year to VND10.24 trillion (US$444.32 million) per session and VND157.31 trillion (US$6.8 billion) per session in the derivatives market, up 77%.

At a time when the Vietnamese government has initially contained the Covid-19 pandemic and is now focusing on economic recovery efforts, the stock market, given its characteristic as one of the most flexible investment channels, has emerged as attractive option for investors amid the current low interest rate trend at the moment.

Since the benchmark Vn-Index plunged to its rock-bottom in March with a 25% slump, it has been on the steady rise and stood at 1,091.33 points at market close yesterday [December 28], an increase of 6.91 points (0.64%) against the previous day, which is around 9% below its all-time high of 1,204 in April 2018.

Vietnamese investors have opened 270,400 new accounts to invest in equities during the past 11 months, bringing the total to 2.7 million, with more than 300,000 accounts set to be opened this year.

The 41,200 new accounts opened in November was the highest monthly figure ever. Of this total, 123 accounts were opened for local institutions and the rest for retail investors.

Pyn Elite Fund, an independent Finish fund manager, expected the Vn-Index to reach the 1,800 points, taking into account the companies’ earnings growth forecasts, the strong outlook of the Vietnamese economy and the opportunities presented by the modernization of the stock market.

“The index target would be achieved with a gain of 80%,” stated the fund in its latest report.

If the earnings grow as expected, the stock market’s P/E ratio would be in the range of 15–16 to equal index level of 1,800 points. Even thereafter, Vietnam’s economic growth will surely support even higher valuations and index levels, it added.

As of December 21, the growth rate of M2, which measures money supply that covers cash in circulation and all deposits, increased 12.56% against the end of 2019, while the capital mobilization rate of credit institutions expanded 12.87%, leading to a credit growth of 10.14% year-to-date.