Weekly Report

[Market Commentary] VNIndex closes modestly down as locals switch out of the VN30 ETF to buy cheaper futures and smaller private-sector banks rally on possibility of higher foreign-ownership limits with EV-FTA. [Futures/ETFs] Foreigners unwound long positions as locals switched to cheaper futures over the E1VFVN30 ETF, with the selldown of large caps at the close narrowing the basis. [Market Movers] PC1, TCM

[Market Commentary] The spike in coronavirus cases in China and more cautious GDP outlook from the MPl led to modest gains in stocks amid lackluster trading. [Futures/ETFs] Futures held 850 and traded higher in the afternoon session but closed negative on heavy local profit taking at the close. [Market Movers] FPT, SBT, VPB [Macro/Strategy] MPI tones down GDP again

Optimism from a recent global business survey and reports of recovering pork supplies sent stocks higher despite news of Vietnam’s fifteenth coronavirus patient

Two additional cases over the weekend renewed corona outbreak fears as stocks retreated from two consecutive sessions of recovery

[Market Commentary] Stocks turned weak after the Ministry of Planning & Investment cut their full-year 2020 GDP forecast to 6.1%-6.3% due to the coronavirus outbreak vs the government target of 6.8%. [Futures/ETFs] Strong foreign buying at the close offsets intra-day weakness in February contracts after the government’s cautious GDP forecast. [Market Movers] HPG, NVL [Company Updates] Vietjet Aviation (VJC); Vinhomes (VHM)

[Market Commentary] VN30 recovered the 850 level in a broad-based rally as China tariff easing boosts sentiment, led by banks and oil-related shares. [Futures/ETFs] Futures closed higher after some tentative trading at the 850 level, with large volumes traded in the closing auction as foreigners unwound intra-day long positions. [Market Movers] NVL, TNG

[Market Commentary] Banks hit by profit taking at the close to push the VNIndex into negative territory as investors worry that the index may test the 900 level again. [Futures/ETFs] February contracts traded weaker after failing again at the 850 level, with trading volumes returning to normal levels and the basis trading back in backwardation to close at minus 3.51 basis points. [Market Movers] CTG, GTN, AAA, ACV [KBSV Model Portfolio] Add: Vietjet Aviation (VJC); Remove: Power Construction JSC No.1

[Market Commentary] Stocks post small gain in closing auction as banks and property stocks support the market after Vietnam confirms tenth coronavirus case that stalls morning rebound. [Futures/ETFs] Futures briefly trade at 850 as volatility in the cash market sees a pickup in trading volumes for February contracts. [Market Movers] MBB, VJC [Macro/Strategy] January PMI & IP [Sector Updates] Coronavirus impacts on Vietnam’s airlines

China stimulus measures helped narrow losses after the VNIndex fell as much as 4.8% and traded briefly below 900 in the morning session on news of three more corona virus cases in Vietnam and plunging Chinese shares.

[Market Commentary] Corona virus fears send Ho Chi Minh stocks lower for another day; airlines fall as the government suspends visas to Chinese tourists; oil & gas stocks drop on another cut in pump prices; banks bounce back after the government announces the road map for capital injections into the state-owned banks and the pharmaceuticals rally strengthens. [Futures/ETFs] February contracts ended in contango after bottom fishing lifts the active contract from the low of the day amid the region-wide sell off sparked by France’s announcement of 4Q19 GDP contraction into fragile markets. [Market Movers] HPG, CTG [Macro/Strategy] Macro Updates [KBSV Model Portfolio] [ADD] Vietinbank (CTG) [REMOVE] PetroVietnam Drilling & Well Services (PVD)