Recommendations

Nam Kim Steel JSC (NKG) is the top 3 largest enterprises in the field of galvanized steel with export markets to more than 50 countries globally. Due to adverse situation in the steel industry, Nam Kims business results were affected, however, the situation has gradually improved and Nam Kim started to have profit since Q2/2023. With the recent increase in the price of HRC steel and the decrease in freight rates, we assess that Nam Kims business situation will turn around and improve strongly in 2024. Along with that, Nam Kim Phu My project contributes to doubling capacity and will help Nam Kim grow strongly when the steel industry recovers. We update price for NKG shares at 26,700 VND, corresponding to a profit of 17%. We use DCF and P/E valuation methods with weights of 70% and 30%, respectively.

▶ During Tuesdays trading session, the market suddenly turned up in the afternoon session after 2 p.m with high liquidity compared to yesterday. ▶ At the end, VN-Index increased 7.37 points, equivalent to 0.68%, reaching 1,095.43 points; HNX-Index increased 0.5 points (+0.22%), reaching 224.39 points. Market liquidity reached 14.06 trillion VND, equivalent to about 682 million shares traded. Foreign investors continued to net buy 47.5 billion VND, focusing mainly on DGC and VPB. ▶ Technical perspective: VNINDEX had a trading session no different from last Fridays session when it dropped sharply in the morning session and then formed a retreat candle in the afternoon session and both closed at 1095. It can be seen that the market is still moving sideways to build a foundation at area 1080 - current support area, corresponding to Fibo 0.5. The MACD, STOCH and RSI indicators all adjusted significantly, showing that the trend from sideways to downward in the coming sessions is high. The reference support levels are at 1080, and beyond is the old bottom at 1030. In addition, in a positive scenario, the market needs to completely surpass 1140 to confirm a new and more obvious uptrend.

In 2023, the world economic picture has faced many difficulties challenges, badly affecting Vietnams import and export activities. However, in recent months, Vietnams import and export are showing positive signs of recovery. Accumulated in the first 10 months of 2023, exports will only decrease by 7% over the same period. Vietnam has the third month of 2023 with positive growth in trade turnover. In 2024, we forecast the import-export activities will improve better as the global economy recovers. 

In regular trading on Monday, the Dow fell 0.16%, the S&P 500 lost 0.19% and the Nasdaq Composite shed 0.07%. Those moves came as investors assessed the pause in the November rally, where all three benchmarks are set to gain at least 7%. Markets also turned cautious ahead of key data this week, headlined by the Federal Reserve’s preferred inflation measure, PCE prices. Several Fed officials will also deliver remarks in various events this week. The yield on the US 10-year Treasury note dropped to almost 4.4% after recent US treasury auctions showed strong demand and investors are coming to terms that interest rate cuts are coming soon in spite of mixed economic data VNINDEX closed at 1088.06 (-7.5 points, 0.69%) with liquidity drying up. The market had 165 green codes and 351 red codes. The stock groups that contributed the most to the markets growth were VHM, VIC, SAB, while BID, TCB, STB pulled the market down. Most of the industry groups fell sharply, including the financial services, telecommunications, and retail services groups. Foreign and self-employed blocks traded insignificantly. World stocks: Readjustment is inevitable after a period of rapid growth Vietnamese stocks: Liquidity dries up Business news: #VCI, #MWG, #IBC, #BSR, #VCB, #PDR, #VNZ Technical perspective and updated recommendations Event calendar Q&A

▶ In Mondays trading session, liquidity decreased sharply, two main indexes decreased, showing negative sentiment of investors.   ▶ At the end of the trading session, VN-Index decreased 7.55 points, equivalent to 0.69%, reaching 1,088 points; HNX-Index decreased 2.2 points (0.98%), reaching 223.8 points. Market liquidity reached VND 11.8 trillion, equivalent to about 595 million shares traded. Foreign investors net buy VND 40.8 billion, focusing mainly on HPG and VPB.   ▶ Technical perspective: VNINDEX had a boring trading session with a narrow trading range and low liquidity. It can be seen that the market is still moving sideways, building a foundation in the 1080 area - the current support area. The MACD, STOCH and RSI indicators all adjusted significantly, showing that the trend from sideways to down in the coming sessions is high. The reference support levels are at 1080, and beyond is the old bottom at 1030. In addition, in a positive scenario, the market needs to completely surpass 1140 to confirm a new and more obvious uptrend.