Market Pulse 20/10: Heavy Pressure from Financial - Banking Stocks

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• VN-Index drops 16 points after strong rally

  VN-Index reversed from a strong early rally to close 16 points lower in the first session of the week, finishing below 1,690 points, its lowest in nearly 3 months and more than 12% below its record high of 1,927 points. Selling pressure focused on banks, with VIC down nearly 4% and pulling the index down more than 13 points, while oil and gas stocks such as PVT, BSR and GAS rose about 1-2% and helped limit the decline. Liquidity reached over VND 13,000 billion, and foreign investors extended their net selling to 19 consecutive sessions, buying about VND 1,400 billion against sales of about VND 2,200 billion. MBS said seasonality is driving the market, as October has historically been the weakest period of the year, and Q3 earnings may not be enough to create a broad ripple effect. TPS sees the index nearing long-term support around 1,685 points, with any sustained recovery depending on improved liquidity.

  VnExpress·19/10, 09:05• VNINDEXVNINDEXforeign investorsbanks
• Maybank: Lending rates may have peaked, Vietnam could cut foreign borrowing costs

  Maybank says lending rates may have peaked after a 16 October meeting in which a deputy minister and banks pledged to cut priority-sector lending rates by 150-200 basis points. The State Bank also asked banks to cut deposit rates for 6-month and longer terms by at least 50 basis points, and BIDV, Vietcombank and Agribank pledged 200 basis point loan cuts through the end of 2026. However, reductions will be uneven across sectors, the conditions for the loan packages have not been disclosed, and a sustainable broad decline to a reasonable level of around 7-10% would require lower capital costs across the system. Longer term, based on Maybank's review of past rating upgrades, achieving investment-grade status could cut Vietnam's foreign borrowing costs by 150-250 basis points, and Maybank expects the upgrade to be accelerated in 2027.

  CafeF·19/10, 04:40▲ VNINDEXinterest ratesbanksState Bank of Vietnam
• Week of October 12–16: Banks cushion VN-IndexVietstock·18/10, 15:50▲ VNINDEXVNINDEXbanksVietnam
• Week of 12-16/10: Vingroup drags, banks support VN-IndexVietstock·18/10, 15:50▼ VIC• VNINDEXVNINDEXVICbanks
• Banks begin cutting lending rates

  After the government directed banks to cut lending rates by 1.5–2% for production and business and priority sectors, some lenders have started to lower rates. Vietcombank chairman Nguyễn Thanh Tùng pledged to cut lending rates by at least 2% by year-end, while BIDV launched from October 15 a VND short-term loan program with rates from 6% per year, up to 2% lower than usual depending on tenor and sector. The moves are expected to ease financing costs for businesses in the fourth quarter, when capital needs typically surge, but access still depends on sector, financial health and cash flow. An expert noted that high funding costs could limit how far banks can cut rates, so businesses, especially small and medium enterprises, need to be able to actually access the preferential credit.

  CafeF·18/10, 06:28▲ VNINDEXinterest ratesbanksVietnam
• October 20: What to read before the stock market opens?Vietstock·19/10, 23:00VNINDEXVietnammorning brief

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  Yahoo Finance·20/10, 07:17• METAMETAearningstech stocks
• An AI bust could come from places investors arent watching , an economist says

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  aol.com·20/10, 07:15▼ NVDA▼ QQQAI investmentartificial intelligenceNVDA
• Yen jumps after JGB auction draws big demand , euro finds relief

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  aol.com·20/10, 07:15▼ USD/JPY▼ DXY▲ EUR/USDbondsexchange ratesJapan
• Unemployment rate dips to 4 . 7 % - but vacancies hit five - year low

  Vacancies fell by 21,000 to 691,000 in the three months to September, the biggest drop since the three months to March and the lowest since July to September 2014 outside the pandemic, while unemployment dipped in the three months to August. Payroll numbers were down 66,000 over the year to September. The ONS said the fall was mainly among smaller firms struggling with higher labour costs, following rises in employer national insurance, the minimum wage and workers' rights. A CBI survey found labour costs and regulations were making it harder to create jobs, and firms urged the Chancellor not to add to their burden in the October 28 Budget. ICAEW's Suren Thiru said the labour market is 'running on idle' and unemployment could climb above 5 per cent, while Shadow Chancellor Andrew Griffith blamed Labour's 'Jobs Tax' and red tape.

  dailymail.com·20/10, 07:15• GBP/USD
• CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet

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  CNBC·20/10, 07:14▲ QQQ▲ SPY▲ NVDA• VNINDEXtech stocksAsiaNVDA
• NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook

  NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.

  Yahoo Finance·20/10, 07:10NIdividendselectricity