- 2023-12-04T00:00:00
- Strategy
The VN-Index recovered in November. Following a sharp decline of 10.9% in October, the VNI rebounded 9.5% in the first half of November (reaching 1,125.5 on November 16), in line with the rallies seen in equities markets globally, including NASDAQ (+9.8% in the first half of November), S&P 500 (+7.5%), Dow Jones (+5.7%), Nikkei 225 (+8.3%), and KOSPI (+9.2%), amongst others. The rallies of global equities were in response to Fed Chair Powell's statement at the beginning of the month, which raised hopes in the market for an end to the Fed's rate hike cycle. Meanwhile, several domestic factors supported the VNI during the month including: (1) The State Bank stopped absorbing money via T-bills since November 9, 2023 (in November, the SBV net injected VND183tn or USD7.5bn in to the banking system via expired T-bills); (2) The National Assembly approved an extension of the 2% Vat cut to June 30, 2024; (3) On November 27, Vietnam and Japan upgraded their 50-year ties to the level of Comprehensive Strategic Partnership. The VNI closed the month at 1,094.1 (+6.4% in November). In 11M 2023, the VNI grew 8.6%, outperforming regional markets such as Thailand’s SET (-17.3%), the Philippines’ PCOMP (-5.2%), and Indonesia’s JCI (+3.4%).
Rallies seen in all sectors. After plummeting 21.3% in October, the financial services sector rebounded 27.5% in November, led by SHS (+40.3%), VND (+28.5%), VCI (+27.3%), and SSI (+21.6%). The financial services sector was followed by the basic materials sector (+15.4%), which can be largely attributed to GVR (+20.5%) and HPG (+15.4%). and the oil & gas sector (+13.4%), which was mainly driven by PVD (+18.9%), PVS (+17.0%), and PLX (+10.0%).
Powered by Froala Editor