The VN-Index lacks upward momentum, trading around the 1,200-point mark.

VN-Index traded weakly with a lack of supporting information, Vietnam Airlines' difficulties resolved, stocks to watch next week, dividend payment schedule,...

VN-Index traded "weakly"

The VN-Index experienced a sharper decline this week, with significantly lower trading volume compared to the previous week. At the close of the week, the VN-Index fell 32.68 points (-2.9%), marking its largest weekly drop in recent times.

The biggest contributor to this decline came from the sharp drop of 28 points at the beginning of last week (June 24th), followed by a further drop of nearly 14 points by the end of the week, falling below the 1,250-point mark to 1,245 points.

Money has also flowed out of the VN30 index, particularly in the technology, banking, and securities sectors. Furthermore, foreign investors continued their net selling position for the 17th consecutive session.

Technology and banking stocks led the market's plunge last week (Photo: SSI iBoard)

Commenting on the market developments last week, Mr. Cao Hoai Thanh Bao, senior investment consultant at Mirae Asset Securities, said that the VN-Index had a weak trading week in terms of both sentiment and capital flow. This is a consequence of the prolonged sideways movement and the increasingly strong supply in the market as short-term traders' profits are low, as well as short-term risks in domestic and international markets.

The information gap, coupled with the end of the trading quarter, is also one of the reasons why investors are hesitant to "put down money".

One stock bucked the trend, hitting the ceiling limit for 12 consecutive sessions.

CDH has been rising steadily recently (Image: SSI iBoard)

While the market reversed sharply downwards, CDH shares (Hai Phong Public Works and Tourism Services Joint Stock Company, UPCoM) defied expectations, surging 387% in just the last two weeks.

At the close of trading in the second quarter, CDH hit its upper limit for the 12th time in the last 13 sessions, reaching a market price of 13,900 VND/share. However, notably, liquidity was quite modest, with only a few hundred units traded.

Vietnam Airlines receives support in overcoming financial difficulties with a 4,000 billion VND loan.

Recently, the National Assembly passed a resolution agreeing to extend the repayment period for Vietnam Airlines Corporation (HVN, HOSE) on its refinancing loan.

Specifically, the National Assembly authorized the State Bank of Vietnam to automatically extend the repayment deadline three times for Vietnam Airlines' 4,000 billion VND loan to help it overcome immediate difficulties.

HVN shares surged in the second quarter (Photo: SSI iBoard)

At the same time, the Government is tasked with directing the State Capital Management Committee at enterprises, relevant agencies, and Vietnam Airlines to develop a comprehensive development strategy; and to urgently finalize the overall plan of solutions to overcome difficulties for Vietnam Airlines so that it can recover and develop sustainably as soon as possible.

On the stock exchange, HVN shares are currently trading at 33,200 VND/share, a sharp increase of 2.3 times in just the last three months of the second quarter.

Stocks worth watching

KDH shares (Khang Dien House Investment and Business Corporation, HOSE) are recommended for purchase by DSC Securities with a target price of VND 40,800/share. This is thanks to the surge in profits from key projects: the Privia project (An Duong Vuong) (over 1,000 apartments have been almost completely sold out since its launch in Q4 2023). In addition, the "revival" of the Thu Duc project group: Clarita and Emeria will be two key projects for sales in the 2024-2026 period.

DSC Securities recommends buying shares of MWG (Mobile World Investment Corporation, HOSE) with a target price of VND 68,500/share. With a strategy of "reducing quantity, increasing quality" expected to optimize costs, DSC states that this could help MWG cut unnecessary expenses for underperforming stores and focus resources on stores with better growth potential, such as Bach Hoa Xanh. Bach Hoa Xanh will be the main growth driver for MWG in the future, especially after the participation of its Chinese partner.

Mirae Asset Securities recommends buying VNM shares (Vietnam Dairy Products Joint Stock Company – Vinamilk, HOSE) with a target price of VND 79,500/share, driven by strong growth in exports to key markets: China, Japan, Southeast Asia, etc. Based on the Q1 2024 business results, MAS expects the company to successfully meet its full-year 2024 plan.

SSI Securities recommends buying PC1 shares (PC1 Group Joint Stock Company, HOSE) with a target price of VND 32,900/share. SSI believes the company has made efforts to maintain growth amidst the general difficulties of the industry. Based on the Q1 2024 business results, the third consecutive quarter of growth, marking earnings from its associate company – Western Pacific, SSI expects profits in Q2 to improve significantly, along with a greater contribution from Phong IIA Industrial Park in Western Pacific.

Assessment and recommendations

Mr. Cao Hoai Thanh Bao, senior investment consultant at Mirae Asset Securities, commented that the market experienced a rather unfavorable trading week during a period of "information vacuum." Therefore, as macroeconomic and corporate data gradually emerge, the market is likely to trend more positively.

This week, the market is expected to improve thanks to a shift away from the information slump, coupled with positive economic signals of year-on-year growth. This will stimulate capital flows back into sectors seeking opportunities in areas benefiting from positive news. The sharp decline experienced last week also makes it easier for these sectors to rise after shedding short-term supply. Sectors to watch include: Ports and terminals: VSC (Container Vietnam, HOSE), GMD (Gamadept, HOSE); Electricity: POW (PV Power, HOSE), PGV (EVNGENCO 3, HOSE),…

TPS Securities believes that the low but high liquidity at the end of the session indicates concerns about continued declines as selling pressure appears across all three capitalization groups: large, mid-cap, and small. The VN-Index is likely to seek deeper price levels in the coming period, with support at 1,180 – 1,220 points. Investors should continue to observe, reduce portfolio weight, and only trade when there are signs of weakening selling pressure.

KB Securities stated that signals indicate the downward momentum is likely not yet over, and the index could retreat to the 1,200-point support level. Investors are advised to avoid buying too early and only disburse a small portion of their existing positions when the index reaches the aforementioned support level.

Dividend payment schedule

According to statistics, 22 companies are finalizing dividend rights this week, including 17 companies paying in cash, 2 companies paying in shares, 2 companies issuing additional shares, and 1 company paying a combined dividend.

The highest percentage was 55%, and the lowest was 1.3%.

Southern Basic Chemicals Joint Stock Company (CSV, HOSE) will pay a combined dividend in cash and issue additional shares. For the additional share issuance, the ex-dividend date is July 1st, with a ratio of 150%.

Tourism Investment and Fisheries Development Joint Stock Company (DAT, HOSE) will pay dividends in shares, with the ex-dividend date being July 1st, at a rate of 10%.

Tin Viet Joint Stock Financial Company (TIN, UPCoM) will pay dividends through the exercise of subscription rights, with the ex-dividend date being July 2nd, at a rate of 30%.

Ba Ria - Vung Tau Water Supply Joint Stock Company (BWS, UPCoM) will pay dividends through the exercise of share entitlement rights, with the ex-dividend date being July 4th, at a rate of 11.1%.

GCL Group Joint Stock Company (KDM, HNX) will pay dividends in shares, with the ex-dividend date being July 5th, at a rate of 7%.

Cash dividend payment schedule this week

*Ex-dividend date: This is the trading day on which a buyer, upon establishing ownership of the shares, will no longer be entitled to related rights such as the right to receive dividends or the right to subscribe to newly issued shares, but will still retain the right to attend the shareholders' meeting.

Code	Floor	Ex-dividend date	TH Day	Proportion
Cinema	HOSE	1/7	July 16th	10%
Cinema	HOSE	1/7	7/10	15%
TID	UPCOM	1/7	July 12th	5%
S55	HNX	1/7	July 31st	15%
ADP	HOSE	1/7	July 18th	8%
EduC	UPCOM	1/7	1/8	10%
ISH	UPCOM	2/7	July 30th	10%
DHA	HOSE	2/7	July 12th	20%
MCH	UPCOM	2/7	July 12th	55%
VNC	HNX	3/7	July 26	15%
DTT	HOSE	4/7	July 22nd	8%
APF	UPCOM	4/7	July 19th	25%
VSA	HNX	4/7	July 15th	32%
SZB	HNX	4/7	5/8	23%
GVT	UPCOM	4/7	July 16th	36%
SAB	HOSE	5/7	July 31st	20%
SAS	UPCOM	5/7	July 18th	10.3%
LBC	UPCOM	5/7	July 17th	12%
NS2	UPCOM	5/7	July 25th	1.3%

Source: https://phunuvietnam.vn/chung-khoan-tuan-dau-thang-7-vn-index-thieu-dong-luc-tang-du-bao-giao-dich-tai-vung-1200-diem-20240701073514861.htm