The VN-Index (VNI) recovered after a weak start to the month, gaining 0.3% MoM. In the first half of the month (September 1st to 16th), the VNI declined 3.5% before it recovered in the second half of the month (VNI: +3.9% from September 16th to 30th). The decline in the first half was due to selling pressure increasing as the global stock market declined in the first week of September (from September 1st to 6th, S&P500: -4.2%; Nasdaq: -5.8%; DJI: -2.9%; Nikkei 225: -5.2%. In addition, Typhoon Yagi brought heavy rain and flooding from September 6th to 14th, placing negative sentiment on the market, especially in the insurance sector. However, several factors that supported the VNI to rebound in the second half include: (1) buying power at low prices returned; (2) US equity markets rallied (from September 6th to 30th, S&P500: +6.5%; Nasdaq: +9.0%; DJI: +4.9%) along with the first Fed rate cut on September 17-18; (3) positive sentiment from the banks sector as of September 17, 2024, when credit growth reached 7.38% YTD (vs 5.73% in the same period last year); (4) China released a series of stimulus measures; and (5) The Government officially approved the removal of the "prefunding" bottleneck, which is a key criterion for the market upgrade by FTSE.

Since the beginning of the year to end-September, the VNI increased 14.0%, outperforming regional markets such as the Philippines’ PCOMP (+12.8%), Indonesia’s JCI (+3.5%), and Thailand’s SET (+2.3%).

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