Foreign investors net sell stocks worth $337.8 mln December fortnight

Foreign investors net sold VND8.2 trillion ($337.8 million) worth of stocks on the Ho Chi Minh Stock Exchange (HoSE) in the last 13 consecutive sessions.

This is higher than the total net-selling value in October and November.

The Vietnamese stock market went through a less positive trading week December 11-15 with continued strong net selling pressure from foreign investors.

The VN-Index, representing the HoSE, opened the week with a slight increase, followed by a series of consecutive sharp declines.

The benchmark index closed the week at 1,102.30 points, down 7.83 points, or 1.27%, from the previous week. The HNX-Index on the Hanoi Stock Exchange (HNX) dropped 1.81% week-on-week to 227.02 points.

NVL of real estate developer Novaland and ACB of Asia Commercial Bank had the most positive impact on the VN-Index, while VCB of Vietcombank was the most negative influencer, taking away nearly 3 points.

Trading value on the HoSE was VND77.51 trillion ($3.19 billion), down 25.8% compared to the previous week, or a 27.6% fall in trading volume.

The average per-session trading value on all the three exchanges of HoSE, HNX and Unlisted Public Companies Market (UPCoM) during the week was VND17.77 trillion ($732 million), down 26.6% week-on-week and 12.8% compared to the five-week average.

Notably, foreign investors continued to be net sellers to the tune of over VND3.48 trillion ($143.36 million) on the HoSE, focusing on banking, steel and real estate stocks.

Most large-cap stocks were under strong correction pressure from foreign investors’ net selling, including MSN of Masan Group (-4.83%), BCM of BECAMEX IDC Corp. (-4.62%), VPB of VPBank (- 4.59%), MWG of Mobile World Investment Corp. (-4.34%), SAB of brewer Sabeco (-4.27%), and STB of Sacombank (-3.9%).

Real estate stocks put in a negative performance with PDR of Phat Dat Real Estate Development Corp. down 8.36%, L14 of Licogi 14 down 6.07%, DIG of DIG Corp. down 5.79%, and QCG of Quoc Cuong Gia Lai Corp. down 5.65%.

Industrial park real estate stocks also went into decline with DTD of Thanh Dat Investment Development JSC down 6.11%, KBC of Kinhbac City Development Holding Corp. down 5.68%, VGC of Viglacera Corporation down 5 .2, and TIP of Tin Nghia Industrial Park Development JSC down 4.72%.

Top broker Saigon Securities (SHS) said that despite under corrections, the VN-Index still maintained the support level of 1,100 points. Therefore, the broker expected the market to gradually form a new accumulation base and move towards the short-term barrier of 1,150 points.

Short-term investors can invest in small proportions, it said, adding in the medium and long term, investors can buy stocks during correction sessions, focusing on leading tickers with good fundamentals and stable growth potential that are moving in the current accumulation state.

Vietcombank Securities (VCBS) said that this was just a short-term correction amidst a long-term uptrend, and that the market will likely bounce back in some sessions next week.

It recommended that investors maintain the proportion of stocks that are still in their short-term support zone. Strong falling sessions will be good opportunities for them to buy tickers remaining in a medium-term uptrend, it added.