Foreign Players Continue Securities Buying Spree in Vietnam with Subdued Appetite

Tuan Minh

19:58 13/10/2017

BizLIVE - Some investors and analysts started to show caution and anticipate a correction phase.

Foreign Players Continue Securities Buying Spree in Vietnam with Subdued Appetite

Foreign investors continue to buy in Vietnamese stocks. Photo: Internet

Foreign investors turned to net sold Vietnamese shares in September after an eight-month buying streak, but their portfolios keep swelling thanks to the buildup of government bonds, data of the government’s financial watchdog showed.
They net sold $12 million worth of Vietnamese shares while buying in $45 million in government bonds in September, leading to a net buying value of $33 million.
September was the first in nine months that overseas players unloaded local equities. After the benchmark VN Index broke the nine-year high of 800, foreign inflows to the local stock market started to dwindle.
According to the National Financial Supervisory Commission, they net purchased $1.45 billion worth of Vietnamese securities, including $790 million in bonds and $660 million in shares, representing an increase of nearly 80% from the same period of 2016.
With the VN Index rising 20% from the start of this year and the buying trend helped lift the market value of their portfolios to a fresh record of $27.3 billion, climbing 33.8% from end-2016.
The commission noted that their holdings make up 19.2% of the local share market and 5.3% of the bond market.
The Vietnamese stock market remains one of the most appealing markets in Asia, with 825 investors, including 714 individuals and 111 institutions, winning a code to access it in the July-September quarter, according to the Vietnam Securities Depository.
Analysts at Viet Dragon Securities have said in a note that investor sentiment has started to cool down following foreign selling. Local investors usually look to foreign trading to anticipate upcoming movements of the markets.
“As the VN Index has stayed above the highest level since 2008 and foreign investors are not buying as actively as in the first half of this year, we recommend taking caution in October trading,” the analysts said.

TUAN MINH

Từ khóa: VN Index, Vietnam