The VN-Index retreated by 1.8% in October as sentiment weakened due to a stronger USD, which led to a VND depreciation of 2.8% MoM against the greenback. PYN Elite saw a milder decline of 1.7% MoM, supported by the outperformance of STB (+5.5%), ACV (+13.7%) and HVN (+10.5%). YTD, PYN Elite +18.5% while VN-Index +11.9%. Q3 earnings showed a solid recovery trend: Total net profit of HOSE-listed companies was +28% YoY, while
earnings of PYN Elite’s core holdings were +30% YoY. The National Assembly elected Luong Cuong, a former army general and permanent member of the Party Central Committee’s Secretariat, as President for 2021-2026 term,
signaling greater political stability with renewed balance in key leadership roles.
Macro: Despite being hit by Typhoon Yagi in September, Vietnam posted exceptionally strong Q3 GDP growth at +7.4% YoY, far exceeding all consensus forecasts. The main growth driver was Industrial & construction
(+9.1% YoY), led by the Manufacturing (+11.4% YoY). Service sector expanded by 7.5% YoY, while Agricultural sector saw a milder growth at 2.6% YoY. Q3 export & import growth were robust at 15.8% and 17.2% YoY,
respectively. Inflation eased further to 2.6% YoY in September from the 3-4% range seen during Jan-Aug. Disbursed FDI +8.9%, reaching a new ATH of $17.3bn in 9M24.
PYN Elite Stock of the Month: VCI
Vietcap is one of Vietnam’s leading brokers, currently ranking #4 in brokerage market share (6.8% in 3Q24). It has long maintained the #1 position in institutional brokerage with market share of approx. 30%, backed by outstanding capabilities in Research and Investment Banking. VCI is poised to benefit, should Vietnam get upgraded to EM by FTSE in 3Q25, especially after the removal of prefunding requirements in Nov-24. Its strength also lies in proprietary trading, with listed & unlisted portfolios consistently delivering superior performance. VCI recently completed a private placement of 144 million shares, in which we participated by taking 15% of the allocation with attractive discount. Fresh capital will enhance VCI’s financial position, propelling market share expansion and profit growth over the next 5 years.