Vietnam’s stock market witnessed a tug-of-war around the 1,270-point mark at the opening of the September 10 session. However, shares of several consumer goods companies stole the spotlight with a strong surge from the get-go.
Notably, BAF shares of BAF Agriculture soared to the daily limit, while other prominent names in the industry such as PAN, DBC, HAG, NAF, MCH, and MSN also witnessed green figures.
Shares of companies in the consumer goods sector, with a majority engaged in pig farming like HAG, DBC, BAF, and MML, reaped benefits from the rising pork prices in numerous localities. Specifically, according to the latest records, the price of live pigs in the North adjusted upward by VND1,000 per kg in Yen Bai Province, reaching VND66,000 per kg. Hanoi maintained the highest price in the region at VND67,000 per kg.
Meanwhile, the Central – Highlands regions also witnessed a slight increase of VND1,000 per kg in Quang Tri Province, climbing to VND63,000 per kg. The remaining provinces fluctuated between VND62,000 and VND64,000 per kg, with Thanh Hoa Province procuring at VND66,000 per kg – the highest in the region.
The Southern region recorded a similar increase of VND1,000 per kg in Ho Chi Minh City and Ben Tre Province, settling at the same price of VND63,000 per kg. Overall, live pig prices continued their upward trajectory across the country. Currently, surveyed prices in provinces and cities fluctuate within the range of VND62,000-67,000 per kg.
Furthermore, the supply of pork may face a potential shortage. According to DSC Securities, the Ministry of Agriculture and Rural Development has recently issued an urgent dispatch to the People’s Committees of provinces and cities, requesting the implementation of proactive measures to prevent diseases in livestock.
The dispatch clearly stated the high risk of disease outbreaks following Storm No. 3 (Super Storm Yagi) due to heavy rainfall causing severe flooding since September 7. This situation has put many northern localities on high alert for the potential spread of animal diseases such as African swine fever and foot-and-mouth disease, which could negatively impact the supply of pigs in the near future.
In reality, according to DSC’s statistics, live pig prices have been on an upward trend since the end of 2023 and are currently hovering around VND65,000 per kg due to a decrease in pig supply. In 2023, pig farmers, especially smallholders, were hesitant to restock their herds due to the continuous decline in live pig prices and the high cost of animal feed. Additionally, the re-emergence of African swine fever also impacted farmers’ psychology.
According to assessments by numerous experts and livestock companies, the supply of pork is not expected to recover immediately as restocking takes time, and the number of piglets imported in 2024 was relatively small. Meanwhile, African swine fever continues to rage in many localities, leading to an increase in the number of sick, dead, and culled pigs. Moreover, pork imports have not witnessed a significant surge compared to the same period last year. Consequently, pork prices are anticipated to remain high until the end of 2024.
The Stock Brokers’ View: VN-Index Faces Deeper Correction Risk
The VN-Index is showing signs of weakness as it fails to hold the support level of the 20-day moving average. This could indicate a potential shift in market sentiment and a possible downward trend in the coming days. With the index struggling to maintain its footing, investors are advised to proceed with caution and keep a close eye on their positions. A break below this key technical level could trigger further selling pressure and result in a more pronounced correction. Vigilance and a strategic approach are crucial in navigating this uncertain period.
The Ultimate Guide to Stock Market Success: Navigating the Dynamic Range of 1,260 – 1,280 Points
The VN-Index formed a bearish candlestick pattern, a “shooting star,” as it touched the 20-day moving average. This indicates a potential shift in market sentiment, with bottom-fishers taking a more proactive approach and providing consistent support to the index.
Tomorrow’s Stock Market Outlook: Which Three Sectors Should Investors Consider for Profit-Taking?
The stock market witnessed another volatile session on September 9th. Despite the fluctuations, the emergence of buying interest indicates that investor sentiment is not overly pessimistic. The presence of buyers suggests a hopeful outlook for a potential rebound.
