Vietnam stock market faces cautious October outlook

The Vietnamese stock market enters October facing uncertainty following a decline in September. Analysts from Nhat Viet Securities (VFS) maintain a cautious outlook due to weak market liquidity and breadth. The VN-Index closed September at 1,768.62 points, a decrease of 63.5 points from the August close. Market volatility was notably influenced by ETF portfolio restructuring and the official implementation of the FTSE Russell upgrade, which saw selling pressure as investors realized profits.

Agriseco Research suggests that interest rates and the upcoming third-quarter earnings season will be the primary drivers for market movement in October. While the FTSE Russell upgrade provides a foundation for attracting long-term capital, challenges remain, including high inflation, exchange rate pressures, and limited domestic liquidity.

Agriseco has identified several stocks with attractive valuations and expected profit growth for the third quarter, including DHC, HPG, HVN, PHR, PVS, and TCB. For instance, HPG is projected to see a 40% increase in after-tax profit due to improved consumption volumes.