Market sentiment improved following policy rate cuts. The VN-Index (VNI) gained 2.5% in May, bouncing back from its 1.5% decline in April. The increase of the VNI in May was attributed mainly to a rumor of another policy rate cut that lingered throughout the month. Subsequently, the State Bank of Vietnam’s (SBV) rate cut announcement on May 23 continued to support the market as the end of the month approached. Despite heightened profit-taking pressure on the last trading day of the month, the VNI closed the month at 1,075.2 (+2.5% MoM). Compared to the end of 2022, the VNI increased 6.8%, outperforming other regional markets such as Thailand’s SET (-8.1%) Indonesia’s JCI (-3.2%) and the Philippines’ PCOMP (-1.4%).

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