Diamonds back in style in 1Q20E

What’s new?

Our estimated VND Index (introduced Dec 20) has outperformed the broader VNINDEX by 3ppt YTD and 7ppt MoM.
► But returns on the actual VND Index have been slightly less, likely due to differences in weightings.
► Leaders: CTG, VPB, MBB, PNJ, MWB.
► Laggards: GMD, CTD, DXG, KDH, and FPT.

Market outlook:

► We expect a seasonal rally following the Tet holidays to be boosted by the launch (in Feb?) of
the VN Diamond ( “full-FOL”) ETF.
► Liquidity impact of ETF launch should be highest for TPB, CTD, GMD, TCB, and KDH.
► A relatively cautious outlook for the rest of 2020. Our yearend VNIndex target dart lands on 1000 points.

Please access the link for our complete report: VN Diamond update Jan 20

Analyst: Matthew Smith,CFA; matthew.smith@yuanta.com.vn