Foreign investors remain strong net sellers in Vietnam stock market

Foreign investors net sold VND3.94 trillion ($156.94 million) on the Ho Chi Minh Stock Exchange (HoSE) in the August 5-9 week, according to major broker Saigon-Hanoi Securities (SHS).

Stocks that foreign investors net sold the most were VJC of private carrier Vietjet at VND1.12 trillion ($44.6 million), VHM of real estate giant Vinhomes at VND1.11 trillion, HPG of steelmaker at Hoa Phat at VND557.6 billion, and TCB of Techcombank at VND503.8 billion.

Meanwhile, VNM of dairy giant Vinamilk continued to attract foreign capital inflows, with a net buying value of VND683 billion ($27.2 million). Foreign investors also spent VND185 billion ($7.31 million) on net purchasing HDB shares of HDBank.

Since the start of this year, foreign investors have net sold a record VND63,587 billion ($2.53 billion) on the HoSE, exchange data showed.

The net selling of foreign investors came in the context of strong fluctuations in the domestic stock market.

The VN-Index, representing the HoSE, plunged more than 48 points in the August 5 session under strong selling pressure to 1,188.07 points - the sharpest decline since April 15.

For the whole week, the benchmark index lost 12.96 points, or 1.05%, to close at 1,223.64. The HNX-Index on the Hanoi Stock Exchange (HNX) decreased 2.18 points, or 0.94%, to 229.38.

Compared to the previous week, trading value went down 0.4% on the HoSE and 5.2% on the HNX.

Stock groups with negative performances included banking, steel, and real estate.

According to SHS, the short-term trend of the VN-Index is neither negative nor highly positive. It says the market will depend largely on the growth prospects of large-cap enterprises and GDP growth.

It also notes that when the VN-Index fluctuates sharply around 1,200 points, many opportunities arise for accumulating good stocks. Short- and medium-term investors should maintain a reasonable stock proportion and limit purchases when the major index recovers to the 1,250-point area, SHS advises.

Sharing a similar opinion, Viet Dragon Securities Corporation (VDSC) believes that the effort to surpass the 1,220-point barrier in the week-ending session could help the market extend its recovery in the near future. However, cash flow will remain limited as the VN-Index rallies and the current upward momentum is a result of reduced supply pressure.

This broker recommends that investors remain cautious and limit buying stocks when they hit high prices. Market recovery should be considered while taking profits or structuring one’s portfolio to minimize risks, it adds.