Foreign investors net buy $42 mln of Vietnamese shares during Jan 22-26

Foreign investors recorded their second consecutive week of net buying Vietnamese stocks with 64.64 million shares worth over VND1.03 trillion ($41.86 million) from January 22-26, up nearly 3.5 times in volume and 2.3 times in value than the previous week.

On the HoSE alone, they were net buyers for four sessions in the week and net sellers for only one session on Thursday, resulting in a total net-buying value of VND895.7 billion ($36.4 million), up 53.12% from the previous week.

Statistics show that VCG of Vinaconex topped the list of 10 stocks most net purchased by foreign investors with a value of VND322 billion ($13.08 million). It was followed by HPG of steel giant Hoa Phat with VND290 billion, EIB of Eximbank (VND238 billion), and CTG of VietinBank (VND192 billion).

Meanwhile, VNM of dairy giant Vinamilk was most net sold to the tune of VND177 billion ($7.2 million), followed by SAB of Sabeco, DGC of Duc Giang Chemicals, VHM of real estate developer Vinhomes, MSN of Masan Group, MWG of Mobile World Investment Corp., KBC of Kinhbac City Development Holding, VND of VNDirect Securities, and TPB of TPBank.

During the week, the VN-Index, representing the HoSE, recorded a decrease of 5.83 points to close at 1,175.67, marking the first week of correction after five consecutive gaining weeks.

VCB of Vietcombank, BID of BIDV bank, and GVR of the Vietnam Rubber Group had the most positive impact on the VN-Index, contributing more than 2.5 points to this bourse. On the contrary, SAB of brewer Sabeco, MSN of Masan Group, and GAS of PV Gas were the most negative influencers.

The average trading value on all three exchanges namely the HoSE, the Hanoi Stock Exchange (HNX) and the Unlisted Public Companies Market (UPCoM) hit VND16.3 trillion ($662.5 million), up 3.6% from the previous week but down 10.3% compared to the five-week average.

Broker Saigon-Hanoi Securities (SHS) believes that in the short term, the VN-Index will continue to increase in the coming sessions on the way to the nearest resistance zone of 1,200 points. In the medium term, it is moving into the balance area to form a new accumulation base in the range of 1,150-1,250 points.

The broker recommends that short-term investors consider putting money down during fluctuations in the coming sessions while medium- and long-term ones gradually accumulate stocks as it will still take quite a long time for a new uptrend to form.

Another broker Vietcombank Securities (VCBS) says the market may continue to have recovery sessions next week and is likely to retest the territory of around 1,190 points.

Short-term investors should maintain the T+ surfing strategy for stocks that show signs of attracting stable cash flow as the VN-Index may return to the 1,190-point area in the coming sessions, it notes.

“Long-term investors should consider partial purchases of stocks that maintain stable growth and are not affected too much during correction sessions,” it adds.