Wednesday, November 21, 2018 4:29:41 AM - Markets open
VN-INDEX 919.02 +2.96/+0.32%
HNX-INDEX 103.91 -0.04/-0.04%
UPCOM-INDEX 52.06 -0.34/-0.65%
Net sells by foreign investors not a worry: analysts - 5/10/2018 9:58:53 AM
 (0 ratings. You must sign in to rate.)
Local investors are concerned with recent increases in net selling by foreign traders, fearing a capital flight, but experts have tried to calm the market with positive recommendations.
Việt Nam’s stock market suffered the biggest monthly fall in the world in April, with the VN-Index on the HCM Stock Exchange losing 12.2 per cent and the HNX-Index on the Hà Nội Stock Exchange sliding 9.4 per cent.
The market has moved within a narrow range in early sessions in May.
Alongside slumps of large-cap stocks, especially in the banking, securities and real estate sectors due to heavy profit-taking pressure (the benchmark VN-Index hit the all-time record high of nearly 1,200 points on April 6), a long net selling streak by foreign investors negatively affected the market.
On the main bourse in HCM City, foreign traders were net buyers of total VNĐ1.6 trillion (US$70.6 million) in April, but if excluding the unexpected net buy value of over VNĐ3.1 trillion on April 20, foreigners were net sellers of about VNĐ1.5 trillion.
Their net selling streak extended to May with a total net sale value of almost VNĐ2.6 trillion till May 9.
Statistics have shown that the market usually falls when foreign investors increase net selling, so the current state of foreign trade has ignited fears of a possible downtrend.
However, market insiders have forecast foreign net sells will likely end soon.
According to Cao Minh Hoàng, investment director at IPA Securities Fund Management Company, foreign investors are restructuring their portfolios. For the last 10 years, each time foreign investors rearrange portfolios, the market suffers volatility and this provides a chance for them to disburse next-phase investment.
“I think Việt Nam’s securities market is still outperforming other markets at the moment,” Hoàng was quoted as saying to financial website
Meanwhile, Dương Văn Chung, director at MB Securities C’s northern area, reckoned foreign investors may be raising capital to prepare for big deals like share sales of Techcombank and Vinhomes.
Besides, many foreign traders are speculative investors like exchange-traded funds (ETFs) who usually have quick response to international fluctuations such as Fed’s interest hike.
However, Chung predicted foreign net selling could stop soon this week.
Nguyễn Thế Minh, head of analysis at Yuanta Securities Vietnam Co, said current net sells by foreign investors was partly affected by short-term concerns such as possible exchange rate hike under pressure of strengthening of the US dollar as well as political risks like the US-China trade spat.
However, according to him, foreign moves were not a worry at this time as Việt Nam’s macroeconomic situation remained stable and overall foreign investor sentiment is still optimistic about the local medium- and long-term market outlook. — VNS  
Read original article here
Newer News
19/11 Market short-term outlook remains negative
15/11 New securities law sparks concerns from expert
08/11 New securities law is a better fit
23/10 Technology continues to attract investment
22/10 Corporate earnings could boost market morale
18/10 Real estate stocks might peak in first half of 2019
15/10 Bull trap doesn’t mean stable rally: analysts
13/10 Viet Nam shares recover after sharp global falls
09/10 VN-Index breaks 1,000 point level again
04/10 Reference exchange rate continues to rise
Older News
10/05 VN-Index suffers as large-caps fall
10/05 Derivatives market records surge in transaction value in April
09/05 Indications slum on both bourses, VN-Index closes at 1,060 points
07/05 Market to see correction on fears of bull trap
05/05 VN-Index slightly rises to stand at 1,026.8 points
04/05 VN-Index declines a second day
03/05 VN-Index losses over 21 points after holidays
26/04 Key stocks rebound, fueling VN-Index’s recovery
24/04 STG: Sotrans to cancel listing on HOSE
23/04 Q2 earnings, high dividend will attract investors
Newsletter Signup
Top Stories
VN Index to rise amid volatility, weak liquidity
VN stocks continue rallying
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Market Update
Last updated at 3:10:47 PM
VN-INDEX 919.02 +2.96/+0.32%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.