LPB Leads VN-Index Decline as Foreign Investors Net Sell USD 112M

Overview

LPBank (LPB), listed on the HOSE, was the largest single drag on the VN-Index in the week ending October 2, 2026, contributing a negative 9.2 points as the benchmark fell 2.66% to 1,737.71. Foreign investors net sold VND 2,794 billion (roughly USD 111.8 million) across the market, with banking and real estate stocks absorbing the heaviest selling pressure.

Key Facts

• VN-Index closed the week at 1,737.71, down 47.4 points or 2.66% week-on-week, the third consecutive weekly decline and the lowest level since late July 2026.
• Average matched-order trading value on the Ho Chi Minh Stock Exchange (HOSE) fell 2.89% week-on-week to VND 11,967 billion per session, 15.18% below the five-week average.
• Foreign investors net sold VND 2,794.0 billion for the week; on a matched-order basis alone, net selling reached VND 4,185.5 billion.
• The banking sector removed approximately 24.6 points from the VN-Index, with 14 bank stocks contributing negatively; LPB alone accounted for -9.2 points, followed by STB at -8.0 points, SSB at -2.5 points, MBB at -2.2 points, TCB at -2.1 points, SHB at -1.0 point and ACB at -0.8 points.
• Real estate was the second-largest drag at -14.9 points, led by VIC at -10.2 points, VHM at -1.6 points and NVL at -1.0 point.
• Foreign net buying on a matched-order basis concentrated in MSR, HNG, FRT, F88, MSN, DGW, PLX, VPI, HDB and VIB; net selling concentrated in PNJ, ACV, TCB, VPB, VIC, VEA, ACB, VHM and HPG.
• Proprietary trading desks net bought VND 1,994.6 billion for the week, or VND 753.6 billion on a matched-order basis.

What Happened

According to the weekly market review, the VN-Index ended week 40 of 2026 at 1,737.71 points, extending a losing streak to three consecutive weeks. Liquidity continued to contract, with HOSE matched-order turnover averaging VND 11,967 billion per session, down 2.89% from the prior week and 15.18% below the five-week average. Market-wide matched-order turnover averaged VND 13,070 billion per session, down 1.59% week-on-week.

The banking sector was the primary source of downward pressure, removing about 24.6 points from the index. Fourteen bank stocks contributed negatively, with LPB the standout at -9.2 points, followed by STB at -8.0 points, SSB at -2.5 points, MBB at -2.2 points, TCB at -2.1 points, SHB at -1.0 point and ACB at -0.8 points. Only VBB (+1.7 points), HDB (+1.4 points) and NAB (+0.1 point) provided support. Real estate was the second-largest drag at -14.9 points, driven by VIC at -10.2 points, VHM at -1.6 points and NVL at -1.0 point. Foreign investors net sold VND 2,794.0 billion for the week, or VND 4,185.5 billion on a matched-order basis, while proprietary trading desks net bought VND 1,994.6 billion.

Market Context

LPB closed at VND 40,000 on October 2, 2026, down 4.29% on volume of 2.8 million shares, according to the price-context block. Peer banks also weakened: MBB closed at VND 19,000 (-2.30%), STB at VND 68,000 (-2.70%) and SSB at VND 17,050. The broad-based decline extended beyond banking and real estate into financial services (VIX, SSI, LPS, VND, HCM, TCX), personal and household goods (PNJ, -2.5 points), information technology (FPT, -2.3 points) and basic resources (HPG, -1.7 points). Support was limited to the electricity, water and gas sector (+0.3 points), insurance (+0.3 points) and retail (+0.3 points), with individual names such as HAG, MSN, BVH, REE, PET and POW offering only marginal offset.

Strategic Significance

For long-term investors, the week’s action highlights a persistent foreign-flow headwind concentrated in large-cap banks and property developers, the two sectors that together account for the bulk of VN-Index weighting. LPB’s outsized -9.2 point contribution, despite being a mid-cap bank, underscores how thin liquidity amplifies single-stock impact on the benchmark. The divergence between foreign net selling (VND 2,794 billion) and proprietary net buying (VND 1,994.6 billion) suggests domestic institutions are absorbing some of the foreign supply, but not enough to stabilize the index. The rotation into basic resources and retail on the foreign buy side (MSR, HNG, FRT, MSN, DGW) may signal early positioning in sectors less exposed to the banking and real estate credit cycle.

What to Watch

• Whether foreign net selling in banking and real estate persists into the next weekly flow report, or reverses as valuations compress.
• LPB’s next quarterly earnings release and any disclosure on non-performing loan formation or credit growth targets.
• HOSE matched-order turnover relative to the five-week average, as a gauge of whether liquidity is stabilizing or deteriorating further.
• Proprietary trading desk positioning, which has been a consistent offset to foreign selling, and whether that support continues.
• Any State Bank of Vietnam policy signals on credit growth quotas or interest rates that could affect bank sector earnings outlooks.