Foreign investors net sell $123 mln worth of Vietnam stocks

Foreign investors were strong net sellers to the tune of VND3.14 trillion ($123.35 million) on the Ho Chi Minh Stock Exchange during the May 6-10 week.

The Vietnamese stock market experienced a positive week, maintaining a good recovery after sharp declines.

Having surpassed the range of around 1,223 points, the VN-Index, which represents the HoSE, continued to gain in the first three sessions of the week to the 1,250-point territory. However, in the last two sessions, the market fluctuated due to selling pressure from blue chips.

Closing the week, the VN-Index had increased 1.94% compared to the previous week to 1,244.70 points. Meanwhile, the HNX-Index on the Hanoi Stock Exchange climbed 3.27% to 235.68 points.

Trading value on the HoSE reached VND91 trillion ($3.57 billion). The Monday session recorded the largest value of VND20.66 trillion ($811.63 million).

Notably, foreign investors net sold strongly on the HoSE with a total value of VND3.14 trillion ($123.35 million), while being net buyers on the HNX to the tune of VND222.66 billion ($8.75 million).

Particularly in the Thursday session, this group net sold more than VND1.7 trillion ($66.78 million) on the major bourse, focusing on VHM of real estate developer Vinhomes with VND1.2 trillion.

According to broker Saigon-Hanoi Securities (SHS), in the past trading week, the market recovered well with rallies in technology and telecommunications stocks such as CMG of CMC Corporation (+30.60%), ELC of Elcom Technology Communications Corporation (+17.36%), FOX of FPT Telecom (+7.72%), and VGI of Viettel Global (+5.45%).

After a period of accumulation, textile and garment stocks regained growth momentum. For example, VGT of Vietnam National Textile & Garment Group (Vinatex) expanded 27.50%, TNG of TNG Investment and Trading JSC 10.89%, MSH of Song Hong Garment JSC 10.56%, and STK of Century Synthetic Fiber Corporation 3.44%.

Among oil and gas tickers, PVB of PV Coating soared 23.01%, PVT of PV Trans 17.13%, PVP of PV Trans Pacific JSC 13.86%, POS of PTSC Offshore Services JSC 12.50%, and PVS of Petrovietnam Technical Services Corporation 11.42%.

Securities stocks also had a positive performance, with BVS of Bao Viet Securities rising 17.65%, CSI of Vietnam Construction Securities 15.69%, CTS of VietinBank Securities 14.61%, FTS of FPT Securities 10.46%, and BSI of BIDV Securities 8.82%.

Saigon-Hanoi Securities believed that after many gaining sessions, the VN-Index, in the short term, has approached the strong resistance area of around 1,250 points.

Therefore, short-term investors should not buy stocks at the current price range and instead wait patiently, it recommended.

Meanwhile, medium- and long-term investors should continue to hold their portfolios and wait for corrections to purchase more shares as current prices are no longer attractive, it added.