70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Foreign capital not weigh on VN stocks: BVSC
Ngoc Mai 08:03, 2021/04/19
As the benchmark Vn-Index is on track to reach the new height of 1,300 points in short-term, domestic capital inflows would serve as a major driver for growth.

Foreign investors maintaining their status as net seller for the past few months has not had significant impact to the stock market’s performance as in previous years, according to Bao Viet Securities Company (BVSC).

 Investors at a securities center in Hanoi. Photo: Cong Hung

As of April 9, foreign investors net sold a total of VND11.45 trillion (US$496 million) on the stock market, of which over VND11 trillion (US$476.43 million) was on the Ho Chi Minh City Stock Exchange (HoSE), home to the majority of large-caps.

“While the amount remains large, the level of influence from foreign investors to the market’s prospect is limited,” stated the BVSC, referring to the low ratio of its selling value to the total of transaction value at 8.5% year-to-date.

Such rate is significantly lower than the 11.8% recorded in 2019 or 10.6% in 2020, it added.

The BVSC attributed the outflow of foreign capital to the restructuring of investment portfolios, however, in long-term, “Vietnam continues to be an attractive market thanks to stable economic-political environment, good price to earnings (P/E) ratio, and expectation for soon market upgrade,” stated the securities firm, expecting foreign investors to soon return as net buyer.

In the meantime, as the benchmark Vn-Index is on track to reach the new height of 1,300 points in short-term, the report suggested domestic capital inflows would be the major driving forces, especially as other domestic investment channels continue to stand idle and the low-interest rate environment as a result of the State Bank of Vietnam (SBV)’ polices continues.

On the same view, SSI Securities Corporation (SSI) expected the stock market to keep its upward trend, due to the low risk of inflation, positive performance of the banking sector in the first quarter, and the strong economic recovery.

“The target of 1,350-1,400 is entirely feasible in the coming time,” stated the SSI.

RELATED NEWS
TAG: Vietnam foreign investors stock market HNX HOSE VN-Index local investors
Other news
14:12, 2024/03/23
Finance ministry clears bottlenecks to pave way for stock market upgrade
One of the key measures is to allow securities companies with sufficient capacity to provide services without requiring foreign investors to have 100% of the funds before placing purchase orders for securities.
22:20, 2024/03/20
Over 60% of Vietnamese use QR codes to pay
Vietnam also leads Southeast Asia in terms of new e-wallet users.
20:39, 2024/03/18
Casinos contribute US$370 million to state budget over 5 years
The number of Vietnamese gamblers is falling.
08:22, 2024/03/13
Standard Chartered and IATA partner to launch IATA Pay in Vietnam
IATA Pay in Vietnam is powered by Standard Chartered’s Straight2Bank Pay.
17:50, 2024/03/07
Vietnam’s capital market shows positive signs: Finance Ministry
The government is planning to set up a capital trading platform for innovative start-ups.
14:29, 2024/03/06
Prime Minister urges banks to cut lending rates further
The Government leader has called for the publication of average lending rates to allow individuals and businesses to choose their banks.