Daily/Weekly Report

Two additional cases over the weekend renewed corona outbreak fears as stocks retreated from two consecutive sessions of recovery

[Market Commentary] Stocks turned weak after the Ministry of Planning & Investment cut their full-year 2020 GDP forecast to 6.1%-6.3% due to the coronavirus outbreak vs the government target of 6.8%. [Futures/ETFs] Strong foreign buying at the close offsets intra-day weakness in February contracts after the government’s cautious GDP forecast. [Market Movers] HPG, NVL [Company Updates] Vietjet Aviation (VJC); Vinhomes (VHM)

[Market Commentary] VN30 recovered the 850 level in a broad-based rally as China tariff easing boosts sentiment, led by banks and oil-related shares. [Futures/ETFs] Futures closed higher after some tentative trading at the 850 level, with large volumes traded in the closing auction as foreigners unwound intra-day long positions. [Market Movers] NVL, TNG

[Market Commentary] Banks hit by profit taking at the close to push the VNIndex into negative territory as investors worry that the index may test the 900 level again. [Futures/ETFs] February contracts traded weaker after failing again at the 850 level, with trading volumes returning to normal levels and the basis trading back in backwardation to close at minus 3.51 basis points. [Market Movers] CTG, GTN, AAA, ACV [KBSV Model Portfolio] Add: Vietjet Aviation (VJC); Remove: Power Construction JSC No.1

[Market Commentary] Stocks post small gain in closing auction as banks and property stocks support the market after Vietnam confirms tenth coronavirus case that stalls morning rebound. [Futures/ETFs] Futures briefly trade at 850 as volatility in the cash market sees a pickup in trading volumes for February contracts. [Market Movers] MBB, VJC [Macro/Strategy] January PMI & IP [Sector Updates] Coronavirus impacts on Vietnam’s airlines

China stimulus measures helped narrow losses after the VNIndex fell as much as 4.8% and traded briefly below 900 in the morning session on news of three more corona virus cases in Vietnam and plunging Chinese shares.

[Market Commentary] Corona virus fears send Ho Chi Minh stocks lower for another day; airlines fall as the government suspends visas to Chinese tourists; oil & gas stocks drop on another cut in pump prices; banks bounce back after the government announces the road map for capital injections into the state-owned banks and the pharmaceuticals rally strengthens. [Futures/ETFs] February contracts ended in contango after bottom fishing lifts the active contract from the low of the day amid the region-wide sell off sparked by France’s announcement of 4Q19 GDP contraction into fragile markets. [Market Movers] HPG, CTG [Macro/Strategy] Macro Updates [KBSV Model Portfolio] [ADD] Vietinbank (CTG) [REMOVE] PetroVietnam Drilling & Well Services (PVD)

[Market Commentary] Ho Chi Minh stocks turned negative for the year after falling sharply on the further spread of the corona virus as investors returned from the Tet holidays. [Futures/ETFs] February contracts closed at the low of the day after failing to rebound in the afternoon session amid light trading ahead of the VN30 Index rebalancing tomorrow. [Market Movers] MWG, HPG

[Market Commentary] Steel stocks and the big state-owned banks extended gains to push the VNIndex higher, while beer companies weighed on the market on weak holiday beer sales. [Futures/ETFs] Foreigners accelerated profit taking as February contracts surged in the market close on hopes for better earnings in 2020 to end the session at the high of the day. [Market Movers] SAB, TCM

[Market Commentary] Vietnam bucked the regional trend and stocks traded higher on strong 4Q earnings numbers from blue chips as they submitted their final year-end results yesterday to meet the regulatory deadline. [Futures/ETFs] February contracts closed higher as blue chips rally on strong quarterly earnings despite the region-wide pullback. [Market Movers] TCB, GAS, FPT [Macro/Strategy] January Index Rebalancing