The VN-Index (VNI) recorded its biggest monthly drop since March 2020 - the month when the World Health Organization declared COVID-19 as a pandemic. After gaining 6.1% MoM in August, the VNI dropped 11.6% MoM to 1,132.1 as of the end of September. The sharp decline was mainly attributed to the Fed’s rate hike and its continued hawkish messages to fight inflation, as well as global stock markets tumbling — including the Dow Jones (-8.8%), S&P 500 (-9.3%), MFEF (-11.9%), KOSPI (-12.8%), and Nikkei 225 (-7.7%).

As of end-September, the VNI was down 24.4% vs end-2021, underperforming neighboring markets such as Indonesia’s JCI (+7.0%), Thailand’s SET (-4.1%) and the Philippines’ PCOMP (-19.9%).

All sectors declined in September — with diversified financials experiencing the biggest loss. After gaining 11.8% in August, diversified financials retreated 16.9% in September as the sector was dragged by SSI (-17.5%), VND (-19.4%) and VCI (-20.8%). Industrials (-16.6%) ranked second due to declines from VGC (-23.4%), DIG (-21.8%), GEX (-21.6%) and IDC (-20.2%). The industrials sector was followed by energy sector — the latter was driven mainly by PLX (-22.0%).

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