MACRO NEWS
- GDP in 3Q2021 decreased by 6.17% over the same period
- CPI T9.2021 increased by 2.06% over the same period, accumulatively increased by 1.82% mainly due to the increase in petrol prices
VN STOCK MARKET UPDATES
- VN-Index fell 1.2% in the week, the decline occurred in all 3 capitalization groups
- Electricity, Water and Oil and Gas group increased strongly in the week
- Liquidity dropped to more than 20,000 billion/session, cash flow focused on Basic Resources group
- Foreign investors continued to net sell more than 1,000 billion VND in the week, focusing on HPG
TECHNICAL ANALYSIS
- VN-Index dropped at the beginning of the new month, signaling the end of the recovery
- Industry performance pivot chart – Banking and securities sectors plummeted
- The performance chart of VN30 basket stocks – GAS and POW is the highlight
SUMMARY
Comments next week – Continue to differentiate. Steel, Oil & Gas and Chemicals remain the focus of the market Vietnam macroeconomics
- Ho Chi Minh City issues plan to bring labor back to work. The Ho Chi Minh City government has approved a plan to bring labor from other localities back to the city to work. Accordingly, labor must have got at least one Covid-19 vaccine dose for a minimum of 14 days or should have recovered from the disease and have a valid negative Covid-19 test certificate.
- The Vietnam Manufacturing PMI remained at 40.2 in September, signaling a further marked deterioration in business conditions across the sector. Temporary business closures, transportation difficulties and staff shortages all contributed to a fourth successive reduction in manufacturing output in Vietnam, and one that remained considerable.
- The index of industrial production (IIP) decreased 4.4% YoY in 3Q21. In 9M21, IIP increased 4.1% YoY; of these, the IIP of processing and manufacturing industry climbed 5.5% YoY and the IIP of mining industry declined 6.4% YoY.
- In September, the number of newly registered enterprises only reached 3,899 enterprises (-62.2% YoY) and registered capital was only VND62.4tr (-69.3% YoY). In 9M21, the total number of newly established enterprises reached 85,500 enterprises, down 13.6% YoY; the average registered capital of a newly established enterprise reached VND14bn, down 3.1% YoY. The number of enterprises withdrawing from the market was 90,300 enterprises, an increase of 15.3% YoY.
- The total retail sales of consumer goods and services was estimated at VND308.8tr (-28.4% YoY) in September, and VND915.7tr (-28.3% YoY) in 3Q21. In 9M21, the total retail sales of consumer goods and services reached VND3,367.7tr, down 7.1% YoY; if excluding the price factor, it decreased 8.7% YoY.
- In September, CPI decreased by 0.62% MoM and increased by 2.06% YoY. Core inflation in September decreased by 0.26% MoM and increased by 0.74% YoY. In 9M21, CPI increased by 1.82% YoY, the lowest increase since 2016, and core inflation increased by 0.88% YoY.
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Source: Tan Viet Securities Inc. (TVSI)
