At the close of trade on September 16, the VN-Index had dropped12.45 points, landing at around 1,239. The telecommunications sector experienced the largest decline, with a drop of 2.45 per cent, followed by the real estate and IT sectors.
However, many stocks defied the overall trend, most notably in the steel sector, where investors expected that the damage caused by Typhoon Yagi would boost demand for roofing sheets and construction steel. Hoa Phat Group (HPG) and Hoa Sen Group (HSG) were the standout stocks, both leading the market in terms of liquidity.
Steel stocks also saw strong price increases. By the close of the trade, shares in Hoa Phat Group had risen 1.61 per cent, Hoa Sen Group by 2.04 per cent, Nam Kim Group by 2.43 per cent, Vietnam Germany Steel Pipe by 2.31 per cent, and Tien Len Steel Group by 0.36 per cent.
"After each storm and flood, there is generally increased construction demand, which benefits the steel sector. However, this is not a long-term story. Looking back at the steel sector’s performance following major storms, the upward trend in steel stocks hasn’t lasted, except in 2016," said Nguyen The Minh, head of research and development for retail clients at Yuanta Securities Vietnam.
