The Vietnamese stock market saw a steep decline in October, driven by a major cash outflow after multiple unsuccessful attempts to break through the 1,300-point threshold on the VN-Index. The continued trend of cash withdrawals could push the market even lower. Liquidity crunch hits hard Despite optimistic news in September, which briefly lifted expectations, the stock market’s performance in October remained bleak. Margin lending continued to rise, and nearly 1.6 million new trading accounts were opened by individual investors—a 70% increase over the same period last year. During the week of October 21 to 27, the VN-Index suffered its steepest weekly decline since June, losing 32 points or 2.55%. A wave of selling pressure rippled through the market, particularly affecting banking and large-cap stocks as they dropped from recent peaks. Trading sentiment, initially cautious, turned into panic as the market experienced sharp, rapid drops. Average daily trading volume dwindled to just over VND15.4 trillion. Notably, individual investors turned net sellers, while domestic institutional investors made net purchases. Meanwhile, proprietary trading desks maintained their buying streak for the fourth consecutive week, though with modest values. Foreign investors continued as net sellers for a third straight week, unloading nearly VND1.05 trillion across […]
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