Vietnam Daily Market Recap Oct 15

Stocks slide, led by technology

The VN-Index opened higher on Wednesday and traded in positive territory in the morning session, but quickly lost its gains in the afternoon, closing down 0.2% at 1,757.9. Market liquidity decreased, with total trading value plunging 27.5% DoD to VND38.0tn (USD1.4bn). While the HNX Index followed the same pattern as the VN-Index in the morning, it was able to hold its gains during the afternoon session, closing up 0.3% at 276.1.

Most sectors declined today, led by Technology (-2.7%), Media (-1.7%) and Telecommunications (-1.6%), while Travel & Leisure (+2.7%), Industrial Goods and Services (+0.8%) and Banks (+0.4%) gained.

FPT (-3.0%) led the decline in Technology (-2.7%) today, as a growing chorus of prominent financial institutions warns of a potential bubble in the artificial intelligence sector. The International Monetary Fund (IMF) and the Bank of England have highlighted that soaring stock market valuations, driven by AI-euphoria, are showing “worrying signs”. Both institutions have noted that current market valuations are approaching levels last seen during the dot-com bubble 25 years ago, increasing the risk of a sharp market correction if investor sentiment sours.

Top laggards today included VHM (-1.1%), VIC (-2.4%) and VCB (-1.0%), while top performers included VPB (+3.7%), VJC (+7.0%) and GEE (+7.0%).

Foreign investors net sold today, with a total value of VND827bn (USD31.2mn), focusing on FPT (VND420bn, USD15.9mn), KDH (VND265bn, USD10.0mn) and HDB (VND170bn, USD6.4mn), while buying focus was on TPB (VND204n, USD7.7mn), SHB (VND202bn, USD7.6mn) and VCB (VND99.0bn, USD3.7mn).

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