News about investor sentiment

About 75% of VN-Index constituents (301 of 401 stocks) have fallen since the start of the year, even though median profit growth reached 18.2% in Q1 and 20.9% in Q2. Dragon Capital puts the index's trailing P/E at 13.5 times at end-September, or 11.4 times excluding five heavyweights (VIC, VHM, VPL, STB and LPB), while TVS reports 12.1 times versus a five-year average of about 13.8 times. Both firms caution that low valuations do not guarantee a recovery, citing persistent foreign net selling and weak liquidity. The article recommends checking whether profits are backed by operating cash flow, whether debt and refinancing needs pose risks, and whether the valuation reflects the outlook, since a low P/E alone does not signal an opportunity.