Foreign investors net sell shares worth $113 mln in 2 weeks on HCMC bourse

Foreign investors have net sold more than VND2.7 trillion ($112.5 million) on the Ho Chi Minh Stock Exchange (HoSE) in the past two weeks.

Notably, the August 14, 22 and 25 sessions saw their net selling value top VND700 billion ($29.16 million) each.

The Vietnamese stock market recorded a fluctuating trading week from August 21-25 with a mixture of gaining and losing sessions.

Closing the week, the VN-Index, which represents the HoSE, increased 0.46% from the previous week to 1,183.37 points with shrinking liquidity. Meanwhile, the HNX-Index on the Hanoi Stock Exchange (HNX) gained 2.94% week-on-week to 242.94 points.

VCB of Vietcombank, VHM of real estate developer Vinhomes, and BID of BIDV had the most negative impact on the VN-Index. VHM alone stole nearly 1.5 points.

On the other side, DGC of Duc Giang Chemicals, SAB of brewer Sabeco, and FPT of tech giant FPT Corp were the most positive influencers.

Foreign investors increased their transactions and continued to be net sellers to the tune of over VND1.8 trillion ($74.98 million) on the HoSE in the week. In the August 25 session, they net sold nearly VND850 billion ($34.4 million), equivalent to a volume of more than 27.7 million shares.

According to brokerage firm Saigon-Hanoi Securities (SHS), although the general market fluctuated strongly in the week, many stock groups still showed positive performances. For example, the technology and telecommunications group saw ELC of Elcom Technology Communications Corporation gained 13.92%, FRT 7.2%, and CTR of Viettel Construction Joint Stock Corporation 14.93%.

Among chemical firms, DGC went up 13.19%; CSV of South Basic Chemicals JSC, up 7.05%; LDP of Lam Dong Pharmaceutical JSC, up 22.83%; DMC of Domesco Medical Import Export Joint Stock Corporation, up 6.97%, and DVN of Vietnam Pharmaceutical Corporation, up 4.71%.

Securities codes also recovered strongly, notably SSI of Saigon Securities (+13.78%), SHS of Saigon-Hanoi Securities (+11.92%), VND of VNDirect Securities (+9.25%), MBS of MBBank Securities (+8.77%), VCI of Viet Capital Securities (+8.46%), and BVS of Baoviet Securities (+8.16).

SHS analysts believe that the market will have recovery opportunities in the short term before reaching the resistance level of 1,250 points. Short-term investors can put down money if the VN-Index surpasses the resistance area of 1,200 points with strong momentum.

"In the medium and long term, investors can take advantage of these corrections to increase their stock proportion, but they should choose leading tickers with good fundamentals and stable growth potential that are moving in the current accumulation state," they said.

Another broker, Vietcombank Securities (VCBS), says investor sentiment has improved, and bottom-fishing cash flow was activated around the 1,180-point territory. In general, the VN-Index has been stable around 1,180-1,200 points and this movement is likely to continue for the next few weeks before a new trend appears.

It recommends that investors definitely reduce share proportions if stocks they hold have hit their stop loss levels. They should also keep a close watch on tickers with good fundamentals to seek opportunities for disbursement to diversify their portfolio as well as to manage risks.

For its part, Viet Dragon Securities Company (VDSC) advises that as the market will continue fluctuating in the near future, investors need to manage their portfolio carefully while considering taking profits and reducing their stock proportion during recovery sessions.