Vietnam’s stock market saw a strong rally in the second week of October, with gains reported in four out of five trading sessions. The VN-Index soared to the 1,270-point mark before getting back to the resistance area of 1,290-1,300 points, backed by the performance of blue-chip stocks.

However, market conditions became volatile again as investors sought to lock in short-term profits. On October 11, the final trading day of the week, the VN-Index closed at 1,288 points, up by 17.8 points (or 1.4%) compared to the previous week. Notably, market liquidity dropped, with the average trading value across all the three exchanges totaling just over VND14.75 trillion per session. Large-cap stocks played a crucial role in driving the VN-Index’s growth during the week, with FPT and MSN standing out as key contributors. FPT experienced a sudden surge after a period of consolidation, advancing by nearly 4% on October 10 to above VND140,000 per share. This marked the highest adjusted market price in FPT’s 18-year history on the stock exchange. Since early 2024, FPT has set 35 new record highs, increasing its market value by nearly 70%. The company’s market capitalization has now shot up to an all-time high of VND205 trillion (equivalent to US$8.4 billion), making it the largest private company on the exchange, following state-run Vietcombank, BIDV and ACV. Similarly, MSN saw a surprising jump of 3.9% on the same day, with its share price approaching VND80,000 per share—the highest level in seven months. This pickup brought MSN’s market capitalization to nearly VND115 trillion (about US$4.6 billion). Liquidity also spiked, with matched share volumes reaching nearly 20 million—five times higher than the average trading volume over the past 20 sessions, marking a new record since MSN’s listing. In the second week of October, foreign investors net sold VND681 billion of shares on the Vietnamese stock market. Meanwhile, in the U.S., three major stock indexes have enjoyed five consecutive weeks of gains. The S&P 500 and Nasdaq rose by 1.1%, while the Dow Jones edged up by 1.2%. Wall Street is anticipating a boost from the Q3 financial statement season, typically kicked off by major banks reporting better-than-expected figures. For instance, JPMorgan Chase’s revenue and profit surpassed forecasts, pushing its stock price up by 4.4%. Similarly, Wells Fargo inched up by 5.6% after reporting stronger-than-expected profits. Stock investors often use bank earnings as an indicator of overall economic health and corporate performance. On October 11, the final trading day of the week, investor optimism grew after the U.S. Bureau of Labor Statistics released its producer price index (PPI) report. The PPI for September increased by 1.8% year-on-year, slightly lower than the 1.9% growth in August. This fueled speculation that the U.S. Federal Reserve (Fed) is on track to achieve its goal of a “soft landing,” reducing inflation to the 2% target without triggering a recession. Earlier reports indicated that U.S. inflation had ebbed to its lowest level since February 2021, although it was still higher than expected, leading to concerns about the speed of inflation cooling. According to the CME FedWatch Tool, there is a 95.6% probability that the Fed will cut interest rates by 0.25 percentage point at its November meeting, while the chance of maintaining the current rate is only 4.4%. As Q3 business results continue to trickle out, this could provide fundamental support to the VN-Index, helping it maintain its accumulation trend and potentially breaking the 1,300-point milestone. Sectors such as banking, retail, shipping, and information technology are expected to report strong growth this quarter. Even during market corrections, these sessions present an opportunity for investors to accumulate stocks with solid fundamentals and long-term growth potential.