Falling interest rates led to an increased margin loan balance in Q3 2023 as domestic investors found stocks more appealing than bank savings.

The Vietnamese stock market retreated on Monday as selling pressure weighed on sentiment, whilst foreign investors continued to net sell on the southern bourse.

The Vietnamese stock market has witnessed choppy weeks since the beginning of the fourth quarter. Business results of the third and fourth quarters, as well as economic recovery factors, will be drivers of the market in the last months of the year, according to experts.

While the market's recovery momentum remains, the upward movement is anticipated to encounter challenges this week due to the potential resurgence of supply pressure.

The stock market ticked up on Friday, recovering from the strong loss hit in the previous session, thanks to the reversals of pillar stocks.

Vietnamese shares plunged on Thursday as panic selling flooded the market, following the sharp fall of large-cap stocks.

Vietnamese shares ended Wednesday on a negative note after foreign investors extended their net selling streak, further dampening investor sentiment.

Amid global economic flux, there is a broad consensus that US inflation is on a declining trend, albeit with some unexpected twists and turns along the way. High interest rates could yield unintended consequences, underscoring the importance of a balanced approach.