Market Recap October 2024 - VN-Index declines after three months of gains
  • 2024-11-04T00:00:00
  • Strategy

The VN-Index (VNI) declined 1.8% in October: The VNI started October with four consecutive declining sessions (VNI: -1.7% from October 1st to 7th) due to high profit-taking pressure as the VNI approached the 1,300-point level. However, the VNI then recovered (VNI: +1.3% from October 7th to 17th) as sentiment improved on upbeat macro data (Vietnam posted +6.8% YoY GDP growth in 9M 2024) and rallies in US equities (S&P500: +2.6%; Nasdaq: +2.5%; DJI: +3.1%) in the same period. However, upward momentum was not sustained and the VNI declined towards the end of the month (VNI: -1.7% from October 17th  to 31st) due to several reasons, including: (1) profit-taking pressure returned; (2) the SBV resumed T-bill issuance (the SBV net withdrew VND52.1tn (USD2.1bn) from October 18th to November 1st from the banking system); and (3) foreign investors net sold around USD358.3mn on HSX in the second half of October. As of the end of the month, the VNI posted a loss of 1.8% MoM.

Since the beginning of the year to end-October, the VNI increased 11.9% in local currency terms, outperforming regional markets such as the Philippines’ PCOMP (+10.7%), Indonesia’s JCI (+4.1%), and Thailand’s SET (+3.5%).

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