Vietnam Insider – Vietnam’s stock market ended October on a volatile note, with foreign investors staging a heavy sell-off that hit several major banking stocks. The VN-Index slid 2.59% for the week, closing at 1,639.65 points, as global uncertainty and profit-taking weighed on blue-chip shares.
The week began with sharp losses before a brief midweek rebound to around 1,675 points, supported by selective buying in large-cap stocks. However, selling pressure soon returned, particularly among high-value sectors such as banking, real estate, and brokerage, leading to another downturn by week’s end. Meanwhile, trading activity picked up among mid- and small-cap stocks, especially those that had underperformed earlier in the year — a sign of speculative rotation in a cautious market.
Foreign Investors Turn Net Sellers, Offload Nearly $120 Million
Foreign investors were net sellers across all major exchanges, offloading a combined VND 2.997 trillion (around USD 118 million) over five trading sessions. The only exception came on October 28, when they briefly returned to net buying before resuming their selling streak.
On the Ho Chi Minh Stock Exchange (HoSE), foreign funds sold a net VND 2.659 trillion, followed by VND 358 billion on the Hanoi Exchange (HNX), partially offset by a modest VND 20 billion in net buying on UPCoM.
Bank Stocks Lead the Sell-Off
The week’s biggest target was Military Bank (MBB), which saw foreign investors dump roughly VND 1.185 trillion (USD 47 million) — the heaviest foreign outflow of any stock in the market. Analysts noted that the move likely reflected short-term portfolio rotation rather than a change in fundamentals, as MBB remains one of Vietnam’s most stable and well-capitalized lenders.
Other major sell-offs included SSI Securities (VND 937 billion), VIX (VND 470 billion), Hoa Phat Group (HPG, VND 277 billion), Vingroup (VIC, VND 212 billion), CEO Group (VND 210 billion), VietinBank (CTG, VND 203 billion), and VietCap Securities (VCI, VND 160 billion). Additional blue chips such as PDR, HDC, VND, and VHM also faced consistent net selling in the range of VND 147–158 billion each.
Tech and Retail Stocks Attract Foreign Buyers
In contrast, foreign investors showed strong appetite for FPT Corporation, pouring in VND 1.35 trillion (USD 53 million) — making it the most aggressively accumulated stock of the week. VPBank (VPB) and HDBank (HDB) also attracted net inflows of VND 286 billion and VND 225 billion, respectively, signaling continued interest in select banking names with strong digital and retail exposure.
Other notable foreign buys included Vincom Retail (VRE, VND 160 billion), Hai An Transport (HAH, VND 141 billion), Techcombank (TCB, VND 101 billion), and Sacombank (STB, VND 87 billion). Consumer and logistics plays such as LPB, VJC, KDH, FRT, and MWG also saw modest inflows ranging from VND 50–80 billion.
Outlook: Foreign Flows Turn Cautious as Global Yields Rise
Analysts view the late-October sell-off as a reflection of broader global risk aversion. Rising U.S. bond yields, geopolitical tensions, and currency volatility have prompted many offshore investors to trim exposure to emerging markets — including Vietnam.
Still, the country’s fundamentals remain solid, with stable growth, easing inflation, and an expected policy rate cut in 2026. Market watchers suggest that foreign capital may return once valuations stabilize and liquidity improves, particularly in sectors tied to technology, infrastructure, and domestic consumption.
For now, the sharp divergence between foreign selling and selective buying underscores a key theme in Vietnam’s evolving market: smart money isn’t leaving — it’s rotating.
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Source: Vietnam Insider