Vietnam’s stock market posted a strong rebound on October 21 following a record-setting loss in the previous session. The VN-Index gained 27 points (+1.65%), closing at 1,663.43 points, recovering over 30% of the drop from the prior day.

Blue-chip stocks led the recovery, with the VN30 Index rising over 45 points (+2.41%). Of the 30 VN30-listed companies, 26 gained in value, including two hitting their daily ceiling (FPT and HDBank), while only four declined (VCB, TCB, MSN, GAS). Across all exchanges, 423 stocks gained (21 hit ceiling), 778 remained unchanged, and 389 declined (19 hit floor).

The market recovered about 20% of the 130-point drop recorded over the past two sessions.

Analysts had anticipated a recovery, citing strong macroeconomic fundamentals, high growth rates, and positive Q3 earnings reports from listed firms.

However, trading remained volatile, with signs of cautious sentiment persisting.

Notably, real estate and brokerage stocks continued to face downward pressure. Novaland (NVL) dropped to its floor price, losing VND 1,050 to VND 14,400 (approximately USD 0.59) per share, with a sell surplus of nearly 26 million shares. Novaland had recently been named in a government inspection report over bond issuance and usage violations. Other real estate stocks such as DXS, SCR, and CRV also hit their lower limits.

Despite this, overall market sentiment improved with substantial bottom-fishing activity. Total market liquidity reached over VND 52 trillion (USD 2.12 billion), with the Ho Chi Minh Stock Exchange (HoSE) alone accounting for VND 48 trillion (USD 1.96 billion).

Foreign investors net bought strongly, injecting approximately VND 2.4 trillion (USD 97.9 million) into the market.

The "Vin" family of stocks - including Vingroup (VIC), Vinhomes (VHM), and Vincom Retail (VRE) - rebounded sharply. Vingroup shares, chaired by billionaire Pham Nhat Vuong, rose by VND 8,500 to VND 203,400 (USD 8.29) per share.

FPT stock surged to its ceiling price, adding VND 6,000 to reach VND 93,000 (USD 3.79) per share. Foreign investors bought 6.55 million FPT shares while selling only about 757,000. Other heavily bought stocks included Hoa Phat (HPG), SSI Securities (SSI), VietinBank (CTG), and SHB.

Aside from a few outliers, the broader market staged a recovery that helped calm fears of a margin call-driven collapse.

Liquidity remained strong, and while the possibility of a shift in monetary policy remains unclear, investor sentiment improved compared to the prior session.

One key concern among investors is margin lending. As of Q2, margin debt hit a record VND 384 trillion (USD 15.6 billion). However, capital increases among securities firms have helped ease concerns, suggesting more room for lending.

Manh Ha