- 2024-03-04T00:00:00
- Strategy
- The VN-Index (VNI) continued to rally in February. After gaining 3.0% in January, the VNI further rose another 7.6% in February – the fourth consecutive monthly increase since November 2023. During the month, the VNI exceeded 1,200 points in the first trading session after the Tet holiday on February 15 and hit 1,254.6 on February 28 – the highest level since September 2022, before edging down on the last day of the month to 1,252.7 (+7.6% in February). The strong increase of the VNI in February was mainly driven by (1) strong performances by global stock markets including the Nasdaq Composite index hitting an all-time high on February 29 (+4.8% in February) and the Nikkei 225 index reaching the highest level since December 1989 on February 22 (+8.8% in February), (2) solid economic data reported in the first two months of the year (see more detail in our January Macro Update published on February 7 and Vietnam Daily published on February 29, and (3) on February 28, Prime Minister Pham Minh Chinh affirmed the Government's strong determination to see the stock market upgraded to emerging market status and directed relevant ministries to urgently deploy solutions to remove obstacles to get Vietnam’s stock market upgraded in 2025. In 2M 2024, the VNI increased 10.9%, outperforming regional markets such as Philippines’ PCOMP (+7.7%), Indonesia’s JCI (+0.6%), and Thailand’s SET (-3.2%).
- All sectors rallied. In February, among all sectors, the basic materials sector recorded the strongest monthly growth (+13.8%), which was supported by GVR (+27.7%) and DGC (+23.9%). The basic materials sector was followed by the technology sector (+ 12.5%), attributed mainly to FPT (+13.9%). Meanwhile, the banks sector, which recorded the fourth consecutive monthly rise (+9.1%), ranked third, supported by TCB (+22.1%), MSB (+16.9%), CTG (+12.5%), and BID (+11.1%).
- Trading turnover reached the highest level in five months. In February, the average daily trading value (ADTV) on the HSX and three bourses combined surged to USD843.6mn (+24.8%) and USD 944.5mn (+24.2%) - the highest monthly level since September 2023. In 2M 2024, the ADTV of the three bourse together jumped 71.5% YoY to USD838.1mn.
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