The VN-Index (VNI) inched up slightly in July. After declining 1.3% in June, the VNI rallied 3.1% from July 1 to July 9 with the support of upbeat economic data for June/H1 2024 (see our Macro Update published on July 5, 2024). However, the VNI retreated 4.8% in the following two weeks due to (1) profit taking pressure as the index approached the 1,300 level, (2) the arrest of the General Director of Quoc Cuong Gia Lai Joint Stock Company (QCG), (3) the General Secretary of Vietnam passing away, (4) and global equity markets falling, with Nasdaq -2.3% and Nikkei 225 – 4.8% in the same period. However, the VNI managed to recover towards the end of the month to close at 1,251.5 on July 31 (+0.5% MoM). At end-July, the VNI increased 10.8% from the beginning of the year, outperforming regional markets such as the Philippines’ PCOMP (+2.6%), Indonesia’s JCI (-0.2%), and Thailand’s SET (-6.7%).

Price performance was diverse between sectors. The oil & gas sector recorded the strongest monthly increase (+6.4%) amongst all sectors after declining 3.5% in June, which was mainly driven by PLX (+12.2%). The oil & gas sector was followed by the banking sector, increasing 4.9%, which was led by HDB (+19.1%), NAB (+18.7%), BID (+10.1%), MBB (+9.9%), and TPB (+5.5%). In addition, the health care sector ranked third with a gain of 3.3%, led by IMP (+21.1%), DMC (+12.6%), and DBD (+5.4%). In contrast, consumer services (-7.7%), industrials (-5.8%), and financial services (-5.1%) were the top lagging sectors.

Trading turnover tumbled. In July, the average daily trading value (ADTV) on the HSX and three bourses dropped 26.7% MoM and 26.5% MoM to USD668.1mn and USD762.5mn, respectively, both hitting the lowest levels in six months. In 7M 2024, the ADTV of the three bourses together surged 1.6x vs 7M 2023 to USD935.3mn.

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