[FiinPro Data] Outstanding Numbers of Vietnam Stock Market 2018
The year 2018 was a roller coaster for Vietnam stock market with market ending the year in negative ground but IPO was the bright spot. We would like to send you key stock market highlights in 2018 from the FiinPro Platform’s data.
VNIndex snapped gaining string for the first time in 6 years
VN-Index continued its strong gaining momentum in the first quarter of 2018 to hit an all-time high at 1,204.3 points on April 9, 2018. However, the market could not hold its steam and finished the year at 892.54 points; a fall of 25.8% from the peak and 9.3% from the end of 2017, recording the first year of decline since 2011. Similarly, the HNX-Index ended the year at 104.2 points, down 11% and UPCoM-Index closed at 52.8 points, down 4% from the end of last year.
Market liquidity continued to rise in general despite declining in the second half.
The average trading value per session on 3 bourses (HOSE, HNX and UPCOM) in 2018 was VND6,500 billion/day, up 29% from 2017. However, the liquidity had shown signs of declining in the last 6 months of the year. The average trading value in the second half of 2018 fell to VND 5,000 billion/day, down 37% compared to VND 8,100 billion/day in the first half
Foreign trading and Proprietary trading
In 2018, in term of match value, foreign investors net sold VND16,050 billion on all 3 bourses.
In which, the heaviest net selling was in Real Estate (VND12,081 billion), Travel & Leisure (VND3,013 billion) and Food & Beverage (VND2,703 billion). On the other hand, foreign investors net bought mainly in Financial Services (VND2,026 billion), Retail (VND977 billion) and Banking (VND779 billion).
Stocks that were sold the most by foreign investors in the year were VIC (VND6,982 trillion), VJC (VND2,990 trillion), VHM (VND2,539 billion). Stocks bought most by foreign investors were DXG (VND1,366 billion), SSI (VND1,098 billion), FRT (VND930 billion).
Except January 2018 with a strong net buying of VND5,493 billion, foreigners were net sellers in most of the remaining months, the heaviest selling was in May with a net-selling of VND 6,563 billion and October with VND2,602 billion before they resumed net-buying in December with a value of VND348 billion.
However, if counting deal value in, foreign investors net-bought a total of VND44,000 billion in 2018, a 51% increase from that in 2017. This was due to some big deals including VHM with a net buying of nearly VND30,000 billion and MSN with a net-buying of VND12,500 billion.
In 2018, counting match value on HOSE separately, the proprietary net bought VND3,500 billion.
By sectors, those which the proprietary net-bought the most were Basic Resources with VND832.1 billion, Real Estate with VND797.5 billion, Food & Beverage with VND498.1 billion; and they net sold the most Financial Services with VND 449.7 billion, Oil & Gas with VND 140.1 billion.
Stocks which were net-bought the most were HPG (VND 775.6 billion), MBB (VND 355.4 billion), MWG (VND 335.7 billion).
Notably, in December 2018, proprietary also boosted up their net buying with a total value of VND995.6 billion, mainly on MWG (VND199.5 billion), MBB (VND186.4 billion), and VNM (VND 91.3 billion).
By type of investors: Statistics on FiinPro shows that individual investors still play the key role in the liquidity on HOSE, accounting for nearly 75% of HOSE’s trading value. Foreign organizations are more active than domestic organizations with the market shares of 17.41% and 7.55% respectively. The trading value of foreign institutional investors increased significantly from 14.6% in 2017 to 17.41% in 2018.
The stock market grew in both quantity and quality, better doing its role as a capital raising channel.
Market capitalization at the end of 2018 was VND4,000 trillion, up 13.7% from 2017, equivalent to 72.3%GDP, up from 70.3% in 2017.
Total capital raised through IPOs and new shares issued by businesses in 2018 was VND120 trillion, up 45% from 2017. In which, the value of IPOs was VND74,000 billion (about USD3.3 billion), nearly 2.5 times that of 2017. Some big IPOs in the year included Vinhomes (USD 1.35 billion), Techcomnamk (USD 0.92 billion).
According to FiinPro Platform’s data, accumulated net profit in 9M/2018 of companies on 3 bourses was VND193.3 trillion, rising 25.3% YoY. After the first 9 months, 168 companies have exceeded the annual profit target. Real Estate and Media sectors saw the strongest profit growth of 123% and 100% respectively from the same period in 2017. In contrast, Telecommunications and Construction & Materials sectors saw steepest drops in profit compared to last year, down 103% and 22% respectively.
Market valuation is attractive
Vietnam market P/E at the end of 2018 was 15.5 times, the same level saw in August 2017. This valuation has dropped 32% from the peak of 23x in April 2018, while the ROE of VN-Index was 20.8%, up from 20.28% at the beginning of 2018. On HNX and UPCoM, market P/E at the end of the year reached 9x and 15x respectively.
The derivative market in 2018 was exciting with an average trading value of about VND 7,500 billion/day, nearly 8 times higher than 2017. The number of derivative contracts averaged 78,736 contracts/day in 2018, much higher than the 10,921 contracts/day in 2017. However, derivative transactions were done mostly by domestic individual investors, accounting about 99% of the value.
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