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Long position on VN30F2208 near 1,220-1,225 pts area should be held and stop the loss when there is the closing price below 1,215 pts level. (Hourly chart)

Long position on VN30F2208 near 1,220-1,225 pts area should be held and stop the loss when there is the closing price below 1,215 pts level. (Hourly chart)

DCM posted 2Q22 business results with a VND4,084bn (+118% yoy and +0.2% qoq) revenue and a VND1,039bn (+250% yoy and -32% qoq) NPAT. It was a very surprising result when the market expected lower sales along with the downtrend of the fertilizer sector. DCM’s revenue in 2Q22 went sideways compared to the previous quarter thanks to a significant contribution from trading revenue. Sales from trading products increased from VND134bn in 1Q22 to VND796bn in 2Q22.

The VNindex has formed a corrective pattern, almost like a Bearish Spinning Top. That means the index may move sideways or correct in the next few sessions. However, the uptrend since July is still intact. Therefore, traders may hold long positions focusing on the leading sectors.

This quarterly earnings report on Vietnam steel production is intended to track the earning growth trend in the steel market. In 2Q22, we saw the revenue growth pace in 2Q22 just slightly declined by 2.4% yoy thanks to the good selling price while NPATMI growth dropped significantly by 67.4% yoy. Net profit growth pace in last 2 quarters was significantly hit by heavier material costs. We also see the high material costs still partly affect the margin in 3Q22 due to inventories cycle. In 3Q22, we expect the total consumption volume (finished steel products and HRC) will positively grow at 2.6% yoy thanks to the low base in 3Q21 caused by the COVID-19 lockdown.

Overall, SAB recorded an impressive 2Q22 business result with a VND9.0tn revenue (+24.7% yoy), and a VND1,793bn PAT (+67.4% yoy). It prompts 1H22 SAB revenue and PAT to go up 25% and 48% to VND16.3tn and VND3.0tn, respectively. Higher revenue was contributed from both higher volume and selling prices. Beer consumption had been recovering continuously due to the normalization of social activities. SAB also increased selling prices easily amidst higher demand.

Last week, trading activity decreased slightly across the covered warrant market. With foreign trading activity, trading activity kept increasing in both supply and demand. However, selling pressure continued to overwhelm supply. Net sell value was VND2bn. Notably, trading interest from domestic and foreigners have shifted to cover warrants which have STB and HPG as the underlying asset.

Long position on VN30F2208 near 1,220-1,225 pts area should be held and stop the loss when there is the closing price below 1,215 pts level. (Hourly chart)

The prelim export turnover of Vietnam’s textile and garment remained optimistic with 16.9% yoy and 2.7% mom, to USD3.68bn in July. The US persisted as the largest textile and garment importer with a USD1.8bn, +13.1% yoy/-0.1% mom, accounting for 48.8% of Vietnam's total textile and garment export value. Overall, in 7M22, Vietnam’s textile and garment export turnover soared 20.6% yoy to USD22.3bn.

Based on the recovery, the uptrend is still intact in the short term. Therefore, traders may hold long positions focusing on the leading sectors.