Breaking stock market news to watch this week

In PHS's view, VN-Index could need a shaking struggle around MA50 in the next few sessions to collect motivation before continuing on the main trend.

The short-term recovering trend is still maintained

Staying in green in most trading time, but Vietnam stock market corrected again and ended the gaining chain of 9 sessions as banking and securities codes saw a strong selling at the end. However, there were still some remarkable points on Real estate, Seaport, and Plastic. The liquidity also got better as it increased to the highest level of nearly 4 weeks, showing that the cash flow is being positive.

PHS said, in technical terms, VN-Index dropped again. The trading volume increased and stayed above 10 and 20-session average, showing that the cash flow was still there. Not just that, the index stayed above MA50, and this drop might only be technical after a while of gaining. However, the index is moving with smaller body candles and is approaching the upper band of the Bollinger bands, showing that selling pressure might appear in the next few sessions. Therefore, the index could need a shaking struggle around MA50 in the next few sessions to collect motivation before continuing on the main trend. The movement range might be within 1,330-1,350 points (around MA50). For HNX, HNX-Index stood still. It still closed above MA20 and MA5, 10, and 20 differentiated positively, showing that short-term recovering trend is still there, the index might still move to challenge 330 points (old peak). In general, the drop on August 6th might only be within a technical shake. Therefore, investors should use the shake to restructure the portfolio on good fundamental codes with good growth in Q2 results and strong cash flow.

Banks will see higher credit room to support the economy 

Maybank Kim Eng Securities (MBKE) had an update report on banks mentioning that to support the economic growth, SBV needs to raise credit growth from Q4. Therefore, SBV might assign more credit room for banks (similar to 2020 as SBV raised the credit room twice). 

Banks with a high safe ratio and good customer foundation will see high credit room. MBKE expects that profit growth in banks might reach 37% this year in a positive scenario, 33% in basic scenario (adjusted), and 25% in a negative scenario.

Ceramic and art export increased by 52% YoY

According to the Industry and Trade Information Center (Ministry of Industry and Trade), ceramic and art export in July is 20 million USD, 3.1% higher than June, up by 47.0% YoY. In 7 months, the value is 143.7 million USD, up by 52% YoY. In 2 weeks, from July 6th to 21st, export value reached 9.3 million USD, down by 9.9% from the previous period. The main export products in this group are ceramic pot, decorating ceramic, household ceramic, and ceramic statue.

HOSE announced to return the codes moved to HNX

HOSE announced to receive letter number 4236/UBCK-PTTT instructing the return of the codes listed from HNX to HOSE on 5 August, 2021. Previously, in early March, facing the order jam problem on HOSE system, SSC released a letter on moving the codes listed from HOSE to HNX, voluntarily. The codes are temporarily removed from HOSE index. The return of the codes to HOSE is conducted without reconsidering listing conditions and profile.

FPT sees closing date for advancing 10% cash dividend

FPT (HOSE: FPT) announced that August 17th is the record date for advancing 2021 first term dividend at the rate of 10%, the ex-rights date is 16 August 2021. With over 907 million outstanding shares, FPT expects to spend over 907 billion on dividend payments. The payment time is 1st September 2021. For 2021 targets, the company sets revenue at 34,720 billion, 16.4% higher than 2020 results; EBT at 6,210 billion, up by 18%. The expected cash dividend rate is 20%. In first half of the year, FPT revenue is 16,228 billion and net profit is 1,906 billion, both up by 19% YoY. The company completed 47% revenue and EBT year target.

SMC mobilizes VND 200 billion of bond

SMC Trading (HOSE: SMC) announced to sell VND 200 billion of private shares in the 3-year term at a fixed interest rate of 8.2%, rear paid, every 6 months. These are non-convertible, with no stock right attached bonds. The guaranteed asset is all of 9.1 million shares of Nam Kim Steel (HOSE: NKG) under SMC owning and 4 million SMC shares. Two foreign investors bought all of VND 200 billion of the bond. The total collected amount will be used to add in working capital used on an operation. For business results, Q2 net revenue increased by 62% to 5,950 billion, parent company EAT is 502 billion, up by 11 times YoY, creating a new record. In 6 months, revenue is 11,020 billion, up by 55%; net profit is 710 billion, up by 13 times YoY. With such results, the company surpassed the profit year target by 149%.

Tu Liem House Q2 profit increased by 21%

Tu Liem House (HOSE: NTL) released Q2 combined results with net revenue growth of 8%, EAT of 21%, reaching 109.5 and 51.4 billion. In 6 months, net revenue is 195.5 billion, EAT is 64.7 billion, up by 12% and 19% YoY. Comparing to the year target, the company completed 24% revenue and 23% profit targets. Until the end of the period, inventory is over 1,237 billion, VND 80 billion higher than the beginning of the year, mostly production and ongoing expense in some projects like Dich Vong, North State Route 32 City (Hanoi), 23ha area in Ha Long City (Quang Ninh).