Daily Market Watch 30/10/2025: The VN-Index Weak ended Despite FED Rate Cut

MARKET HIGHLIGHTS

o       The U.S Federal Reserve (FED) lowered its policy rate by 25bps to 3.75–4.00% in its October 29 meeting, marking the second consecutive cut this year despite persistent inflation. The Fed also announced it will halt quantitative tightening (QT) and stop balance sheet reduction from December 1, 2025. The move is seen as positive for Vietnam, potentially easing pressure on USD/VND exchange rates that remain elevated.

o       China and the U.S have nearly finalized a reciprocal tariff framework following the October 30 meeting between Donald Trump and Xi Jinping. The U.S will halve tariffs on fentanyl-related Chinese goods to 10%, while China will resume soybean purchases and suspend rare-earth export restrictions for at least one year. Both leaders also agreed to cooperate on resolving the Russia–Ukraine conflict and remove fees and tariffs on maritime transport.

o       The market traded negatively in the morning as investors ignored the positive macro headlines. Weak liquidity during the recovery  phase created bearish technical signals. Retail investors stayed cautious while sellers pushed on selling as a result. The VN-Index fell 0.71%, pressured by Vingroup stocks (VIC -3.77%, VHM -0.96%, VRE -3.62%) and the Gelex group (GEX -3.83%, VIX -5.24%), while HDB, VJC, FPT, and MSN provided limited support.

o       The market extended its losses in the afternoon as T+2 bottom-fishing positions arrived investors’ accounts. Traders took profits quickly as technical indication readings turned weaker.Most stocks declined further compared to the morning session. The VN-Index dropped to its intraday low of 1,661.48 points (-1.44%) due to the rush sell in mid and large-cap stocks in the broad market. There was some recovery from 2pm in several market movers such as  VIC, VHM, GEX, HDB, FPT, which helped lift the Index a bit. However, Gelex related names were sold aggressively in the last session and led to some concerns from retail investors. The VN-Index closeddown 0.96%.

o       Liquidity remained muted for a second consecutive session. Total trading value was merely USD 902.5 mn (-5.09% DoD). Foreign investors continued selling strongly with a net value of USD -44.3 mn on HoSE, focusing on VIX (-USD 14.8 mn), GEX (-USD 6.9 mn), and MBB (-USD 6.5 mn). On the buying side, FPT (+USD 7.5 mn), HAH (+USD 3.4 mn), and GMD (+USD 3.2 mn) saw continued inflows.