Foreign capital not weigh on VN stocks: BVSC
As the benchmark Vn-Index is on track to reach the new height of 1,300 points in short-term, domestic capital inflows would serve as a major driver for growth.
Foreign investors maintaining their status as net seller for the past few months has not had significant impact to the stock market’s performance as in previous years, according to Bao Viet Securities Company (BVSC).
|Investors at a securities center in Hanoi. Photo: Cong Hung|
As of April 9, foreign investors net sold a total of VND11.45 trillion (US$496 million) on the stock market, of which over VND11 trillion (US$476.43 million) was on the Ho Chi Minh City Stock Exchange (HoSE), home to the majority of large-caps.
“While the amount remains large, the level of influence from foreign investors to the market’s prospect is limited,” stated the BVSC, referring to the low ratio of its selling value to the total of transaction value at 8.5% year-to-date.
Such rate is significantly lower than the 11.8% recorded in 2019 or 10.6% in 2020, it added.
The BVSC attributed the outflow of foreign capital to the restructuring of investment portfolios, however, in long-term, “Vietnam continues to be an attractive market thanks to stable economic-political environment, good price to earnings (P/E) ratio, and expectation for soon market upgrade,” stated the securities firm, expecting foreign investors to soon return as net buyer.
In the meantime, as the benchmark Vn-Index is on track to reach the new height of 1,300 points in short-term, the report suggested domestic capital inflows would be the major driving forces, especially as other domestic investment channels continue to stand idle and the low-interest rate environment as a result of the State Bank of Vietnam (SBV)’ polices continues.
On the same view, SSI Securities Corporation (SSI) expected the stock market to keep its upward trend, due to the low risk of inflation, positive performance of the banking sector in the first quarter, and the strong economic recovery.
“The target of 1,350-1,400 is entirely feasible in the coming time,” stated the SSI.
- Vietnam c.bank reportedly sells over US$10 billion from FX reserves
- Vietnam Deputy PM expects no disruption to petrol supplies
- Standard Chartered launches new head office in Hanoi
- Central Bank ready to meet market demand for foreign currencies
- C.bank expects Vietnam's inflation to stay below 4% in 2022
- Vietnam’s green, social and sustainability debts total US$1.5 billion in 2021
- Finance ministry proposes drastic cut in environmental protection tax on fuel
- Vietnam parliament calls for removing credit quota policy
- Vietnam's economic recovery fuels high credit growth: C.bank
- HSBC revises down Vietnam's inflation forecast to 3.5% in 2022
Vietnam, UK seek closer relations
Hanoi welcomes over 8.6 million visitors in first half of 2022
Agritech, Greentech, Deeptech and Foodtech - foreign funds interests in Vietnam
Australian Foreign Minister enjoys Pho ga in Hanoi
Hanoi GRDP growth hits 7.79% in first half
Hanoi selects final design of Tran Hung Dao Bridge
Fiercer storms forecast to hit Vietnam towards year-end
Bun cha listed in the British Queen's Platinum Jubilee Cookbook
Hanoi seeks UNESCO’s support in culture, education and tourism