VNI had its worst monthly performance in 13 months. After a decline of 3.2% on October 3, the VNI recovered 3.7% in a six-day rally during October 5 to 13 thanks to positive market sentiment supported by the rebound in the US stock market (DJI increased 3.0% during October 3 to 17). However, the VNI then plummeted 11.0% towards the end of the month. Key reasons that led to the decline of Vietnam’s stock market in the second half of the month include: (1) Rumors on an entity that got inspected and had to clear its margin book in the last minutes of the ATC trading session on October 17 (although this rumor could not be verified); (2) the US stock market declined in the second half of the month (DJI fell 2.8%) due to concerns of rising yields and disappointing business results of technology stocks; (3) The high volume of foreign selling of VHM shares in the ATO session on October 26 negatively impacted retail investors’ sentiment across the market; and (4) Weak Q3 earnings results. The VNI closed October at 1,028.2 (-10.9% in October). In 10M 2023, the VNI still grew 2.1%, outperforming regional markets such as Thailand’s SET (-17.2%), the Philippines’ PCOMP (-9.0%), and Indonesia’s JCI (-1.4%).

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