Market Recap January 2023 - VN-Index has robust start to new year

The VN-Index (VNI) recovered strongly in the first month of the year. After plummeting nearly 33% in 2022, the VNI had an impressive return on the first trading day of 2023 as it surged 3.7% to 1,043.9, and it remained solid throughout the month. The strong buying force drove the VNI to surpass the resistance level of 1,100 before the Tet Holiday and later closed the month at 1,111.2 (+10.3% vs end-2022). As a result, the VNI outperformed other neighboring markets such as the Philippines’ PCOMP (+3.5%), Thailand’s SET (+0.2%) and Indonesia’s JCI (-0.2%) in January.

All sectors rallied in January. Diversified financials led the way as the sector rebounded 20.2% in January 2023 vs a decline of 5.5% in December 2022, which was mainly due to SSI (+22.0%), VND (+22.6%), VCI (+28.6%) and HCM (+28.7%). The materials sector had the second largest increase (+16.0%) due to the market’s expectation for stronger public investment in 2023 and increasing commodity prices, led by HPG (+22.8%), HSG (+34.2%), HT1 (+38.6%) and NKG (+29.8%). Diversified financials and materials were followed by the energy sector (+14.8%) — led by PLX (+16.1%) — and the banking sector (+13.3%) — driven by VCB (+14.9%), BID (+16.8%) and TCB (+13.7%).

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